Global oil storage market is set to hit $17.22 billion, registering a compound annual growth rate (CAGR) of 4.2 per cent over the next six years from 2017 to 2023, said a report.

The market had been valued at $12.86 billion last year. It is now set to become more competitive due to burgeoning investments by some of the key market players, according to Transparency Market Research (TMR).

Various industry players are undertaking strategic collaborations including joint ventures, acquisitions, mergers and partnerships in order to establish a stronger market position.

The stiffening competition in the oil trading market is prompting the players to expand their crude oil storage infrastructures and terminal networks, and invest in the development of storage facilities and new pipelines.

Fluctuations in global rates of natural gases and crude oil are prompting vendors to own high qualities of petroleum fuel and reserve them at storage facilities.

The storage can even be for a short span of time as the oil could be transported for refinement. Increase in oil production is another factor that has encouraged suppliers to improve their inventories and infrastructure to store large quantities of oil.

The emergence of Liquefied Natural Gas (LNG)-powered marine containers due to proliferation of LNG projects is expected to further expand the oil storage market.

Regularly evolving consciousness of environment hazards enforced by regulators globally has impacted the flow and storage of Petroleum Products - the most looked forward is the changing specification of Fuel oil.

In October this year, the International Maritime Organization (IMO) announced that it was going ahead with a global Sulphur cap of 0.5 per cent on marine fuels starting from January 1, 2020. To achieve this specification, industry experts have shared that it would need more blending and increased storage resources.

The Middle East and Africa (MEA) region holds a dominating position in the global oil storage market due to the contribution of Qatar, Oman, the UAE, Iran, Saudi Arabia and Nigeria to the sector. This region is expected to post a CAGR of 7.91 per cent between 2014 and 2024.

Renish Group, a fast-growing company in the oil storage space, is well positioned to address the rising demands in the sector, with a vision to be a global energy organization.

The group has grown to become a $500 million company in 2016 from $240.00 million in 2012, with assets estimated at $30 million.

Renish storage facility, known as Alaska International FZE, has 22 tanks with capacities ranging from 3,400m3 to 6,500m3 with a combined capacity of 125,000m3, capable of handling various petroleum products and located at the strategic port of Hamriyah, in the UAE.

With the highest share of revenue coming from the Middle East region at 36 per cent, the Group is strategically expanding into new territories with horizontal and vertical growth plans.

Kalrav Dixit, the executive director, said: "Renish Group is rightly ‘moving forward with energy’ to become one of the leading players in the global oil storage space."

"With steady growth, a diversified product portfolio and a well-defined roadmap, we are poised to climb up the value chain by introducing more terminals and trading offices across the globe, along with alliances with major industry players in all locations and business areas," he stated.

Within a few years of its international presence, Renish Group has firmly established itself in key global markets, exploring profits in the value chain and making capital investments in terminals and logistics for further expansion of its footprint globally, he added.-TradeArabia News Service