PetroChina in talks for Fujairah oil storage-sources

Mon Mar 21, 2011 8:01am GMT

"PetroChina is working with the Fujairah government," the source said. There was no deadline set for the East Asian oil giant to make a decision on how to proceed, he said, but added that increasing competition might speed up the process.

"I'm sure they'll make a decision soon. So many people are now interested in Fujairah, they will have pressure to make a decision fairly soon," he said.

PetroChina was not immediately available for comment.

The port, which has established itself as a major bunkering hub along with Singapore and Rotterdam, is now aiming to do the same for oil storage by more than doubling its capacity to over 7 million cubic meters by 2012 from the current 3 million cubic meters.

"China is a big market and Chinese players coming to Fujairah is very important to us," one port official said. "We expect to see more and more Chinese companies here."

The port official said there were some early talks with other Chinese companies but did not elaborate.

PetroChina has been aggressively pursuing opportunities across the world to expand its international trading network and buy refineries. [ID:nTOE70905K]

It has set up a trading desk in Dubai 2010.

In early 2010, via its trading vehicle Chinaoil and overseas investment arm PetroChina International, the Chinese major took over around five million barrels of storage in the Caribbean that was formerly leased by Saudi Aramco. [ID:nN30225998] (Editing by James Jukwey)

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