Published: May 14, 2013
Petroleum company to proceed with landmark tank terminal project.
Mashreq Petroleum, a platform company of Egyptian private-equity firm Citadel Capital, has signed a 25-year, build-operate-transfer agreement with the East Port Said Port Authority. The agreement will allow Mashreq to build the first independently owned tank terminal in Egypt and can be extended by up to five years providing that operational efficiency targets are met.
The tank terminal project was the reason for Mashreq Petroleum’s founding in 2004. Set to cost EGP3bn (US$431mn), the facility will have capacity for 800,000 tonnes of product including fuel oil, gasoil, naphtha and jet fuel (all classed as liquid bulk), and bunker fuel. Mashreq will benefit from annual storage capacity of 10mn tonnes and bunkering capacity of 2-3mn tonnes.
The facility will primarily serve the liquid bulk markets of the Far East, the Middle East and the Mediterranean, as well as offering bunkering services to ships going through the Suez Canal. Total traffic through the Canal equates to 10% of global maritime transport and around 22% of container trade.