EMEA News
Gulf Petrochem Planning $80 Million Fujairah, East Africa Storage Expansion
United Arab Emirates (U.A.E.)-based Gulf Petrochem Group (Gulf Petrochem) says that it is planning to invest $80 million (Dh290.4 million) over the next year to expand its fuel storage capacity in Fujairah and East Africa.
"We are planning to spend about $25 to $30 million in acquiring new terminals in East Africa and about $50 million in adding new tankage in Fujairah," said Thangapandian Srinivasalu, Executive Director at Gulf Petrochem.
"We have been growing at a decent pace. Our plans and expectations are to keep up with this pace.
"In the last one year we have gone full length [in terms of] barrel trading. We have expanded our operations in coal and pet coke," he added, noting that the company is focusing their future growth in U.A.E., India, and East Africa.
“Today majority of our revenues are coming from this geography and our investments are more here. We are planning to acquire lubricant companies and bitumen plants in India as we seek to expand in the Indian market."
Gulf Petrochem is reported to be pursuing the acquisition of terminals in Dar es Salaam, Tanzania and Mombasa, Kenya.
“The next decade belongs to Africa and there are tremendous business opportunities in East Africa, which is politically stable and secure. There is steady growth of 5 to 7 percent in Tanzania, Kenya and Uganda,” asserted Srinivasalu.
Srinivasalu further noted that low oil prices has been befitting Gulf Petrochem, saying "Except E&P companies everyone will be happy with low crude oil prices including consumers, marketers and traders."
"Thanks to the surplus of product and contango in the market, the storage tanks are full."
Earlier in September, Gulf Petrochem announced that its $60 million project to add up to 270,000 cubic metres (cbm) to its current capacity of 412,000 cbm at its Fujairah storage terminal will be complete by March 2017.
