Wed 28 Apr 2010 08:02

Aegean to expand UAE storage capacity


Leading bunker supplier announces plans to build an inland storage facility in the United Arab Emirates.



Aegean Marine Petroleum Network Inc. has announced that it plans to build an inland storage facility in the United Arab Emirates (UAE) after entering into a 25-year terminal lease agreement, which includes an option for an additional 25 years, with the Municipality of Fujairah.

Construction of the new facility, which will total approximately three million barrels in capacity, is expected to be completed within the next 18 to 24 months.

Aegean Marine intends to lease a portion of the facility upon completion to a third party, which is expected to generate incremental income in addition to the company's core physical supply operations. Currently, Aegean Marine operates one inland storage facility located in the U.K.br>
In seeking to capitalize on the increasing worldwide demand for in-land storage, the company also has an onshore storage facility currently under development in Jamaica and another in Morocco, where Aegean Marine maintains exclusive storage rights.

In addition to its inland storage facilities, the company continues to operate four double-hull tankers that are used as floating storage. Including the new facilities in the UAE, Jamaica and Morocco, Aegean Marine's total capacity for the worldwide storage of marine fuel is expected to exceed seven million barrels.

Commenting on the company's in-land storage strategy, E. Nikolas Tavlarios, President said, "Our plan to build a new in-land storage facility is consistent with our plan to further grow sales volumes in the United Arab Emirates, the third largest bunkering market in the world, and strengthen our ability to provide superior customer service.

"As we strategically increase our dedicated inland storage capacity, we plan to draw upon our revolving credit facilities and seek alternative debt financing to fund this important long-term project. By once again expanding Aegean Marine's infrastructure for the global supply of marine fuel from procurement to delivery, we expect to strengthen our industry leadership and increase our future earnings potential."

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