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Gulf Petrochem FZC has revealed that it plans to build a storage terminal in Fujairah, which would be used to store product for the local bunker market.

The Sharjah-based firm, which specializes in the development of refining facilities and storage terminals, has said that it recently entered into a lease agreement with the Government of Fujairah for a plot of land near the port of approximately 200,000 square metres.

The company says the land would be used to build a storage terminal with a capacity of around 1 million cubic metres.

According to Gulf Petrochem, the firm is in talks with 'major bunker operators' regarding the storage of products for the marine fuels market.

With regards to leasing, the company said "We have initiated talks with global operators looking for a presence in Fujairah where they currently have a weakness in their global oil portfolio."

News of the plan to build a new storage terminal follows the announcement in January by Abu Dhabi's government-owned International Petroleum Investment Co., which said that plans for the construction of a refinery in Fujairah were in doubt and under review following the drop in demand for refined products around the world.

Meanwhile, media reports last month said that terminal operator DP world has postponed the planned expansion of the container terminal at the port of Fujairah.

The decision to delay the project will have been a blow to local bunker suppliers expecting bunker sales volumes to grow as a consequence of the terminal's expansion.