An oil storage terminal being built in the UAE port of Fujairah by Singapore-based Concord Energy and a subsidiary of China's Sinopec is expected to start operations by late next year, Concord Energy said on Friday.
Asia's strong oil and oil products demand have prompted many oil producers and trading houses such as Litasco, Noble Group and Azeri SOCAR to secure oil storage rights in the Gulf region.
Construction of the tank farms is expected to start this month with commercial operations commencing in the fourth quarter of 2014, John Stuart, chief executive of Assets Group Concord Energy, said in a statement.
Concord and Sinomart KTS Development, a wholly-owned subsidiary of Sinopec Kantons, each hold 50 percent of the project.
Stuart said Fujairah Oil Terminals had recently signed binding agreements with a consortium of six international banks for the provision of a $252m senior debt facility.
Construction of the 1.155 million cubic metre terminal is expected to take 21 months.