U.A.E. Oil Port Beyond Hormuz Sees Storage Expansion
il storage companies are refinancing debt and planning borrowing to expand terminals at the United Arab Emirates port outside the Hormuz Strait to help traders manage an oil glut with Middle East borrowing rates near a record low.
Fujairah Oil Terminal FZC, a joint venture between China Petroleum & Chemical Corp. and a Singaporean partner, is seeking to refinance a construction loan, according to two people with direct knowledge of the situation. Gulf Petrochem FZC, which operates another storage terminal nearby, is considering financing to expand capacity, according to Paul Nix, general manager for terminal operations.
An oil glut estimated by the U.A.E. at 2 million barrels a day and growing Middle East output of products such as gasoline are boosting demand for storage, benefiting Fujairah, the biggest oil storage port on the Persian Gulf. Refinancing is more attractive with the three-month Emirates interbank offered rate, a benchmark used by banks to price loans, at 0.677 percent last month, matching the lowest since at least 2006. Source: Bloomberg
(1 day ago, by arnekiel
United Arab Emirates
N 25° 11' E 056° 22'