Enoc wins $100m financing for Dubai terminal
Dubai, June 19, 2012
UAE-based Horizon Terminals Limited (HTL) said it has secured a $100 million financing facility to partly finance the the construction of a new bulk liquid petroleum terminal in Dubai.
A wholly-owned subsidiary of Emirates National Oil Company, HTL said the 10-year Islamic term transaction deal, inked with Standard Chartered Bank, Emirates NBD and Noor Islamic Bank, has a dual tranche of US dollar and Emirati Dirham.
Commenting on the deal, Enoc CEO Saeed Abdullah Khoory said, 'The financing agreement is a strong testament to the local and international banking sector’s confidence in the project’s business model and strong cash flow potential.'
The term partly finances the construction of a second 60 km jet fuel pipeline from the new bulk liquid petroleum terminal in the Jebel Ali Free Zone to the Dubai International Airport, and its associated storage tank farm with 141,000 cu m of capacity.
“The new bulk liquid petroleum terminal in Jebel Ali is set to energise Dubai’s fast-growing aviation sector and is of strategic importance to Dubai’s economic diversification initiatives,” he pointed out.
“The Government is focused on further strengthening the city as the region’s tourism and business hub, in which the aviation sector has a key role to play in,' he noted.
According to Khoory, Enoc has an existing pipeline linked to the Dubai International Airport.
With jet fuel requirements expected to increase significantly in the near future, the Emirati firm is building supporting infrastructure to meet the growing demand through the new $142 million terminal.
A second pipeline is expected to be commissioned in the second half of 2013 which will also have a connectivity provision to the Al Maktoum International Airport in Jebel Ali.
This new terminal will support the growing needs of Dubai International Airport, the Al Maktoum International Airport and Dubai’s increasing energy needs as it moves towards further economic growth,' he stated.
Enoc is the single largest supplier of jet fuel at Dubai International Airport, fuelling various passenger and cargo airlines operating out of Dubai. The company has the capability to supply over 70 airports in Middle East and Asia-Pacific regions, remarked Khoory.
Most of the jet fuel is sourced from Enoc’s refinery in Jebel Ali, which is operating at its full capacity of 120,000 bbls/day. The company is in the process of undertaking a refinery debottlenecking project which will increase its refining capacity to 140,000 bbls/day, he added.
The groundbreaking ceremony of the new bulk liquid petroleum terminal was held recently, with the fully automated terminal scheduled for commissioning in the fourth quarter of 2013.-TradeArabia News Service
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