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Dubai: Dubai Multi Commodities Centre (DMCC), Star Energy Resources and Tropicana Trading DMCC on Saturday announced the signing of a framework agreement to build a world class oil products storage facility at Techno Park in Dubai.
The proposed oil storage terminal will involve an estimated investment of $200 million.
The facility will store a wide range of oil products, including gasoline, gasoil, diesel and jet fuel, as well as offer complementary services such as blending.
Located within easy distance of the upcoming Dubai World Central - Al Maktoum International Airport, the storage infrastructure facility is expected to service the new airport via a pipeline directly linking the two facilities.
In addition, two new oil tanker berths will be built at the western breakwater of Jebel Ali port for easy supplier access, with the capacity to accommodate tankers of up to 80,000 tonnes.
The final investment decision for the project will be subject to positive results from a front end engineering and design study, which will be completed within six months' time.
"Ensuring adequate oil storage facilities is crucial for enhancing Dubai's role as the Middle East's leading oil products trading hub and for accommodating the rapid growth of Dubai's own oil products demand, particularly its need to support a burgeoning civil aviation sector," said DMCC executive chairman Ahmad Bin Sulayem.
Dubai World Central, a $33 billion facility, will be the world's biggest airport when it is completed in 2012, with an annual capacity of 120 million passengers.
Tropicana Trading DMCC is a four-year-old company with interests in oil trading, terminal operation, tanker ownership and management.
- With inputs from Bloomberg
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