Land lease agreement signed by BPGIC and FOIZ

Brooge Petroleum and Gas Investment and Fujairah Oil Industrial Zone have signed a land lease agreement for BPGIC’s third expansion phase, Brooje has announced in a statement. 

BPGIC is developing terminals in stages, with construction on Phase II expected to be completed by the third quarter of 2020. If Phase III is completed successfully as planned, the company will become the largest oil storage and services business in Fujairah, almost double that of its closest competitor.

The statement said: “Phase III will be used by Brooge to further increase its capacity for crude oil storage and services if needed, to host the remaining 90 per cent of its refinery facilities.”

BPGIC will lease a 450,000 m2 area in FOIZ as part of the agreement. Its third phase expansion will add storage and services capacity of 3.5 million m3, which is 3.5 times the size of their projected operations post-phase II.

Construction for the land will start in 2020. Since the agreement was signed, BPGIC has also had discussions with top global oil majors who have expressed interest in securing portions of the additional capacity.

Capt Salem Al Hammoudi, director of FOIZ, said: “We are happy to be announcing the initial lease for significant land with Brooge Petroleum, which represents future capacity additions of over 3.5 times their facilities that are currently operating and under construction.” 

He added: “We host the Middle East’s largest commercial storage capacity for refined oil products, with the current storage capacity of 10 million m3 and we welcome the expansion of Brooge’s operations in Fujairah.”

For more information visit www.broogeholdings.com

28th February 2020