Vitol Tank Terminals International (VTTI) is studying almost doubling its oil storage capacity at the port of Fujairah, just outside the Strait of Hormuz, and could start construction by early 2014, a spokeswoman for VTTI said on Sunday.

VTTI, jointly owned by the world's largest oil trader Vitol and Malaysian shipping company MISC Bhd, currently has 1.18 million cu m of storage capacity in a total of 47 tanks. The Fujairah terminal is 90 per cent owned by VTTI, while the government of Fujairah has a 10 percent stake.

A spokeswoman in the Netherlands confirmed VTTI's plans detailed on its website to increase oil storage capacity by 1 million cubic meters.

"VTTI is looking into the project. It has to go through a phase where it needs to get permits, finalise plans and then the construction can start," she said.

"It would start to be developed from early 2014," she said. – Reuters