Flexible fuel storage in Fujairah

UAE

Khameis Alantali, CEO of GPS Chemoil, talks to The Energy Year about tailoring storage infrastructure to the needs of international fuel and petroleum products traders and the growing importance of biofuels in the regional energy mix. GPS Chemoil owns and operates two liquid storage terminals in the Emirate of Fujairah.

How has the evolution of the Port of Fujairah impacted GPS Chemoil’s business?
GPS Chemoil was among the first oil terminals in Fujairah. We are working under the visionary leadership of H.H. Sheikh Saleh Bin Mohammed Al Sharqi, Chairman of the Department of Industry and Economy in Fujairah, who is also the chairman of our company. His vision was to transform Fujairah from a bunkering port into a major oil hub.
We began operations exclusively for our use, with an initial storage capacity of 30,000 cubic meters, and have since expanded to an impressive 698,000 cubic meters. I envision GPS Chemoil becoming one of the leading oil storage sites globally, contributing to Fujairah’s continued growth in alignment with his vision.
Our strengths include robust infrastructure, operational flexibility and uncompromising professional and safety standards. We are a reliable terminal that follows strict rules of compliance. We don’t allow sanctioned products and make sure to recover all fluids for our customers. We ensure that our customers experience no operational losses.
Our tanks are designed for flexibility, allowing seamless transitions between various fuel oils, including a shift from HSFO [high-sulphur fuel oil] to low-sulphur fuel oil. This adaptability has attracted more international players to collaborate with us.
Furthermore, we are exploring the possibility of constructing a new terminal that is tailor-made for international companies. We are in discussions to secure an anchor client before investing.

Why are international oil companies interested in coming to Fujairah?
Major energy players are increasingly recognising Fujairah’s strategic location, advanced infrastructure and commitment to adopting clean fuels such as LNG and biofuels. Companies that seek a port with good infrastructure, safety and stability come to Fujairah for their operations.
Furthermore, the Port of Fujairah features state-of-the-art infrastructure, strategically designed to enhance its competitiveness and position it as a leading hub for maritime and trade activities in the UAE and the region. This has been driven by the government’s vision, which is spearheaded by our chairman.
Our majority shareholder is Fujairah National Group (FNG), and that makes GPS Chemoil the terminal that is most committed to Fujairah and that best understands the government’s objectives. Through FNG, we handle oil storage, trading, shipping and vessel management. We deliver a comprehensive one-stop solution, ensuring unparalleled convenience and operational efficiency for our customers. We are concentrating on the overall service, on the growth of Fujairah and on supporting the government’s vision. It is a combination of top-down and bottom-up strategies which attract international clients.

What would you say is your market share at the moment?
We have 7% of the total storage capacity in Fujairah, and we are approved by major oil trading companies such as Vitol, PetroChina and Glencore, among others. International oil companies such as BP, ExxonMobil, TotalEnergies and Aramco have also approved our terminals.

What steps are you taking to manage energy more efficiently?
We are planning to invest in solar power for the terminal to align with the UAE’s sustainability goals. We are looking into a 3.5-MW plant, but we first need to ensure we follow all applicable government regulations. With the Barakah Nuclear Energy Plant plant in operation, there might be new caps on independent power generation.
Once we get approval from the government, we have the feasibility study, the budget and everything else we need in place to generate 3.5 MW, which would allow us to reach our net-zero target in about two years. If government regulations don’t allow us to develop such a power plant, then we will invest up to the allowable level to reduce our emissions.

What are some trends you are noticing among sector operators within the global shift to biofuels?
The sector is trending towards biofuels and hydrogen. Biofuels are easier to produce, and it is easier for terminals to adapt to them. Two years ago, we started to see major players in the market pay more attention to biofuels and decided it was the right time to invest.
Even though the UAE is not an agricultural country and does not have much production, the country sees biofuels as an important diversification effort. Today, the UAE imports and blends biofuels. The margins could be better. Presently up to 35,000 tonnes of biofuels are manufactured in the UAE per year.
The biofuels segment still faces some challenges in the UAE, as ports still need to develop specific infrastructure. We don’t expect such developments to occur unless biofuel flows increase significantly. However, the expectation is that, from 2030 onward, the UAE will not rely as much on oil. By the time the shift from oil to biofuels becomes a reality, we want our storage terminals to be adapted and ready. We are preparing for the future.

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