SOCAR AURORA Fujairah Terminal commissions first tanks
12 January 2012
Once complete the terminal will consist of 20 tanks
SOCAR AURORA Fujairah Terminal has completed phase one of its 641,000 m3 terminal and the first cargo from SOCAR Trading, Geneva is expected within days.
Commercial operation of three tanks, consisting of 115,000 m3 capacity, will begin on 30 January.
The partnership between SOCAR (the State Oil Company of Azerbaijan Republic) and Aurora Progress, the Swiss based commodity trading house was established in May 2010.
All the infrastructure for the facility has been built and the company will now start on phase two of the project.
In December SOCAR AURORA secured a $110 million (€86 million) loan from The Arab Petroleum Investments Corporation (APICORP) to continue with the terminal development.
Phase two, which is expected to take around 15 months, will up the storage capacity to 350,000 m3 with an additional nine tanks.
Despite not yet being built, these tanks are already fully leased with five year contracts. Phase three will begin once customer demand has been secured. ‘We’re looking forward to making full use of the terminal,’ says Ammar Kutait, SOCAR AURORA’s CEO. ‘We are already commencing discussions over the rental of phase three and we would expect to be able to make a decision on the go ahead of phase three in Q1 2012, but we don’t see any reason to wait.’
Once complete the terminal will consist of 20 tanks. Each one will be fitted with internal floating roofs, aluminium domes, jet blending systems and coatings.
Nine out of the 20 tanks will be heated, and three tanks will have additional coatings to enable jet fuel storage.
Although the terminal is not located on the shore as land is scarce, the terminal will be connected to the Port with 1.8km pipelines and customers will have use of the Port of Fujairah’s jetty facilities.
The first oil terminal in Fujairah (OT1) has three berths, and is able to accommodate three large or five smaller vessels of up to 100,000 dwt. The newly constructed second terminal (OT2) will have four berths and is able to accommodate four large or eight smaller vessels and up to 180,000 dwt.
The Port is in the process of designing and developing two further berths which will be capable of taking fully laden VLCCs. Kutait expects this to be complete within two years.
When embarking on this project SOCAR AURORA chose a different business model from many terminal operators in the Middle East.
‘Rather than choosing one EPC contractor, which then uses its own sub-contractors, we chose different contractors for each stage of the build,’ he explains.
Fujairah National Construction & Transport did the civil works, Italian-based Bellelli Engineering built the tanks, Swedish-based Consilium installed the electrical, instrumentation and fire fighting equipment and Al Banna Engineering of Dubai, the pipelines to the jetty.
‘This makes the project more complicated, but we have a team managing the different contractors, and we are also using a local consultancy firm, MUC Oil & Gas, to supervise everything,’ Kutait says.
By taking this approach the terminal is able to keep a tight control on costs.
Tank Storage magazine