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Bulk liquid terminal operator Horizon Terminals (HTL), a wholly owned subsidiary of Emirates National Oil Company (ENOC), intends to spend more than US$350 million on the new oil storage terminal in Malta it announced towards the end of last month, according to market sources.

The new terminal, located near Marsaxlokk Port, will have a capacity of 600,000 cubic meters for black and clean products, with one jetty for VLCCs (very large crude carrier) and two for vessels up to 120,000 DWT.

HTL said last mont that the reason for choosing Malta as its next project location was that the country is a Mediterranean hub for shipping lines, located at the crossroads of some of the world’s busiest shipping routes that carry over 120 million tonnes of oil products.

Commenting on the company's expansion plans in May, Saeed Abdullah Khoory, ENOC's Group Chief Executive, said: "This is significant move that will consolidate HTL's position as a global leading terminal operator. ENOC's investment in this facility through HTL, reiterates our confidence in Malta as a strong business model and as our gateway to the European market. We are confident that such investments will put us in good stead to take advantage of growth opportunities offered by Europe's oil sector."

HTL said it is currently in the process of obtaining the necessary permits, including the Environmental Impact Assessment (EIA) permits.

According to the company, work on the site is planned to commence in the second half of 2011.

HTL, the independent terminal arm of ENOC, manages more than 5 million cubic metres of storage with a network of seven terminals around the world. It provides terminal services for bulk liquids storage as well as a range of logistics services.