GI SURVEY | What are the Next Steps to Establish an Oil Products Trading Hub in the Gulf by 2020?

GI SURVEY | What are the Next Steps to Establish an Oil Products Trading Hub in the Gulf by 2020?




As the UAE’s only emirate on the Arabian Sea coast, Fujairah is at the heart of the new energy corridor opening up East of Suez to Asia. The emirate is already established as a world-scale bunkering and storage center alongside Rotterdam and Singapore and is set to benefit in the next few years from storage companies’ plans to expand crude and petroleum product facilities. In addition to this expected increase in storage of 75% by 2020, Fujairah also has ambitions to become a downstream destination, with plans to build a, 200,000 barrels per day (b/d), refinery and LNG re-gasification facilities.   

The port is also the terminus for Qatari natural gas via Dolphin Energy’s pipeline from Taweelah, and the location of a 380-kilometre pipeline connecting oil production from Abu Dhabi, which allows 1.5 million b/d of Arab Gulf crude exports to bypass the Strait of Hormuz gateway to global markets. Fujairah is not only a hub for oil but can also act as a center for electricity generation. In its position on the open sea, outside the more enclosed straits of Hormuz, Fujairah has the advantage of cooler waters and so is well placed for a water station for electricity production. Imported LNG can be de-gasified and fed to power stations around the Emirates.  

Easy access to capital, ever-growing infrastructure, healthy volumes of trade and robust benchmarks underscored by transparent methodologies need to be in place to enable the Gulf to deepen its global trading footprint.   

Fujairah’s location south of the Strait of Hormuz makes it the best spot in the region to deepen the region’s trading presence, according to 83% of respondents to a Gulf Intelligence Industry Survey of 150 energy professionals. Surprisingly perhaps, Oman’s Sohar and Bahrain did not receive a single vote, while 11% said Dubai was best placed to spearhead the region’s global trading efforts. 

GI SURVEY | What are the Next Steps to Establish an Oil Products Trading Hub in the Gulf by 2020?

GI SURVEY | What are the Next Steps to Establish an Oil Products Trading Hub in the Gulf by 2020?

GI SURVEY | What are the Next Steps to Establish an Oil Products Trading Hub in the Gulf by 2020?

GI SURVEY | What are the Next Steps to Establish an Oil Products Trading Hub in the Gulf by 2020?

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