EMEA News
Qatar-Saudi Rapprochement Could Add 2 Million MT/Year to Fujairah Bunker Demand
Fujairah could see a boost of more than 2 million mt/year to its bunker demand levels after a resolution of the Qatari diplomatic crisis, according to a local market source.
As Ship & Bunker reported last month, Fujairah saw a knock-on effect on its bunker volumes after the start of the crisis in 2017, and a resolution could mean it sees stronger growth levels than most other bunker ports in 2021.
Diplomatic relations between Qatar and Saudi Arabia, the UAE, Bahrain and Egypt were restored on Tuesday, ending a three-year embargo against Qatar that had seen its ships avoid UAE ports.
The return of Qatargas ships to Fujairah could add 180,000-220,000 mt/month of bunker demand there, a local market source told Ship & Bunker Tuesday.
"It's positive news," the source said.
"But we have to wait. It may take a few months before we can see actual demand coming to Fujairah from Qatargas."
Saudi Arabia, the UAE, Bahrain and Egypt broke off diplomatic relations with Qatar in June 2017, accusing it of support for terrorism and criticising its relationship with Iran. This resulted in a ban on Qatari-flagged ships visiting their ports, meaning Qatar's gas carriers shifted their bunker demand from Fujairah to ports outside the Middle East.
Fujairah's bunker demand was around 12-15 million mt/year at its peak, according to local market sources, and is likely to have been below 8 million mt in 2020.
