PetroChina, China's largest oil company, is reportedly looking for oil storage assets in the United Arab Emirates and is in talks with the government of Fujairah to build oil storage facilities at the Fujairah port, according to Reuters. The company may build a facility with the capacity to store 1 million cubic meters of oil products.
PetroChina (PTR) is among the international oil majors scurrying to find storage assets across the globe. Sources quoted by Reuters said the company can either opt to build its own facility in UAE or choose to work with companies that have existing facilities. Fujairah is looking to double its storage capacity to 7 million cubic meters by next year.
PetroChina already has a presence in UAE through a trading office in Dubai and the sources quoted by Reuters speculate that more Chinese oil majors are expected to be attracted to Fujairah in the futures, which could force PetroChina to make an official decision on its plans in the near-term. The company did not comment on its Fujairah plans.
Over the weekend, Saudi Aramco, Saudi Arabia's state-run oil producer, and PetroChina said they will build a 200,000 barrel-a-day refinery in southern China in an effort to meet soaring fuel demand in China, the world's fastest growing major economy.