Vopak Horizon Fujairah, an oil storage joint venture is conducting a feasibility study on further expanding its terminal capacity in the emirate. The engineering, procurement and construction (EPC) contract could be tendered by the end of this year.
“Hopefully, [we will tender] by the end of this year, but there are a lot of uncertainties,” said Christiaan van Nielen, terminal manager at Vopak Horizon Fujairah.
The first stage of the study will be completed in March after which it will be reviewed by the Vopak Horizon Fujairah board. If the board decides to press ahead, front-end engineering and design study (feed) will start in April or May.
The feed study will be undertaken by joint venture partner Emirates National Oil Company (Enoc) and could lead to an investment proposal to being drawn up. Once that is done the EPC contract will be tendered.
Additional storage capacity beyond the tanks currently under construction would be built on reclaimed land, which will have been added to the coastline by mid-2011.
The joint venture is already adding 600,000 cubic metres of capacity by constructing 21 new oil storage tanks, while also expanding their mooring space by adding additional berths. The project is set for completion in the first quarter of 2012, and will boost the joint venture’s capacity in Fujairah to a total of 2.1 million cubic metres.
Apart from Vopak and Enoc, the joint venture is made up of the government of Fujairah, Independent Petroleum Group and Vitol Group.