UAE's BPGIC leases oil storage tanks to France's Total in Fujairah - sources

Brooge Energy

03/05/2020 15:27

By Rania El Gamal
    DUBAI, May 3 (Reuters) - Brooge Petroleum and Gas Investment
Co (BPGIC)  BROG.O  has leased oil storage facilities in the
United Arab Emirates to France's Total  TOTF.PA , industry
sources familiar with the matter said, as global crude storage
rapidly fills up.
    The company is leasing six storage tanks in the UAE emirate
of Fujairah for six months and this could be renewed for another
six months, one of the sources said.
    The tanks, which store oil products, have already received
initial cargoes, two of the sources said.
    BPGIC and Total did not respond to a request for comment.
    Global oil storage is filling swiftly as lockdowns to halt
the spread of the coronavirus pandemic hammer consumption,
driving down global demand for crude and its products, such as
gasoline, diesel and jet fuel, by as much as 30%.
    The Organization of Petroleum Exporting Countries, Russia
and other allied producers have agreed to rein in supplies from
May but the cuts amounting to about 10% of global crude
production has still left the world awash with oil.
    UAE-based BPGIC, established in 2013, plans to expand its
storage capacity for crude and oil products to around 3.5
million cubic metres, from 1 million cubic metres now.
    It is already one of the largest holders of storage assets
in Fujairah, which is itself among the world's largest bunkering
hubs.
    

 (Reporting by Rania El Gamal; Editing by Edmund Blair)
 ((rania.elgamal@thomsonreuters.com; +971 562 160 434; Reuters
Messaging: rania.elgamal.reuters.com@reuters.net ; Twitter:
@RaniaElGamal10))