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UAE-based Hiap Seng Engineering has won a $241m sub-contract for work on a storage terminal project in the emirate of Fujairah, undertaken by the local midstream oil and gas company Ecomar Energy Solutions.

Hiap Seng has been awarded the contract by the project’s main contractor, Greece-based Intrakat Group.

Ecomar awarded the entire engineering, procurement, construction and commissioning (EPCC) works for the project, which will be executed in three phases, to the Fujairah-based subsidiary of Intrakat Group, Intrakat Societe Anonyme Technical & Energy Products.

Hiap Seng’s scope of work comprises EPCC for phase one of the Ecomar storage tank farm project, with a duration of 28 months.

As part of its sub-contract from Intrakat, Hiap Seng Engineering is required to build storage facilities with a total capacity of 700,000 cubic metres, which will hold 350,000 cubic metres each of black oil and white oil.

Hiap Seng will also need to build associated units, including eight lines of interconnecting pipeline to the jetty manifold and fire protection systems.

The storage terminal is to be fully automated and backed up with diesel generators.

Hiap Seng will execute detailed engineering work on its contract from its offices in India and the UAE, while project management, procurement and construction activities will be carried out from the firm's offices in the UAE.

In 2021, Ecomar was reported to be considering an expansion of its refinery in Fujairah, and the construction of new storage capacity.

Ecomar plans to increase refinery capacity to 62,000 barrels a day (b/d) from 22,000 b/d, and inland storage capacity more than fivefold to 1 million cubic metres. This third expansion phase should be completed by the end of 2024, Leigh Shaddick, Ecomar’s trading director, was quoted as saying in March 2021.

The refinery and storage capacity expansion will cost an estimated $350m, Shaddick said.