ENOC Group records increase in storage demand globally

ENOC Group, the wholly-owned Dubai government entity, has reported a significant surge in the demand of storage capacity across its terminals in the UAE, Saudi Arabia, Singapore, Morocco and Djibouti.

The increased demand for bulk liquid storage at its facilities is a result of the upward price trajectory, as customers seek storage provision due to the weakening demand for oil in the wake of the COVID-19 outbreak.

Through its wholly owned subsidiary and independent terminal, Horizon Terminals, ENOC Group owns and operates six terminals in the UAE and four in other global markets with a total combined storage capacity of 6.6 million cubic metres (m³) across 346 tanks. Out of this, 4.19 million m3 storage capacity belongs to 211 tanks in the UAE and 2.47 million m3 belongs to 135 tanks outside the UAE. 

His Excellency Saif Humaid Al Falasi, Group CEO, ENOC, said: “As an integrated energy player operating across the energy sector value chain, we focus on adding substantial value to the business and in helping address industry challenges at critical times. To meet the growing demand for oil storage, Horizon Terminals has further optimised capacity for chemical, petroleum and gas products across all its storage facilities.”

With the advent of International Maritime (IMO) 2020 regulations cutting the allowable sulphur emissions from marine vessels from 3.5 per cent to 0.5 per cent, storage demand for low-sulphur fuel oil (LSFO) is set to increase and remain steady till the end of 2021. Horizon Terminals has  prepared for this drastic shift to LSFO by adopting strategies for asset optimisation, deploying Operational Excellence Management System (OEMS) for seamless operations as well as ensuring the highest international Health, Safety, Environment and Environment measures in the wake of the current situation.

“We are well-prepared to fulfil our mandate and provide uninterrupted fuel supply. Our robust supply chain and terminalling infrastructure will meet the storage requirements of our stakeholders. We have invested significantly in scaling up our storage infrastructure in the past years and now we are uniquely positioned to meet the growing demand for storage. With oil prices set to revive by mid-2021, demand for storage will continue to be robust. Our goal is to be the largest independent terminal service provider for bulk oil storage in the Middle East, Africa and the Mediterranean, while maintaining a leading position in the Far East region,” added Al Falasi.

Horizon Terminals has implemented a number of stringent measures to ensure business continuity, asset integrity and employee safety. These include the development and activation of a pandemic business continuity plan across all terminals, to maintain critical business operations. The plan included guidelines on operating critical functions – including minimum manpower and back up resources, transporting products between terminals, managing a standby fleet of tankers and drivers to transport products as required between terminals in Jebel Ali and Fujairah, as well as limiting ship-shore interaction, without compromising vessel safety and operations.

Other precautionary measures to ensure the safety of employees on site included screening and restriction of entry on terminals, putting distribution teams on weekly rotations, segregating office employees to work from home, as well as providing all employees with ongoing trainings on precautionary measures and safety guidelines to avoid the spread of COVID-19.