Fri 18 Mar 2016, 08:12 GMT

Aegean's Fujairah terminal 'at 100% capacity'


CEO says Fujairah is 'facing headwinds due to low prices and Iranian oil which has flooded the market'.



Aegean Marine Petroleum Network Inc. (AMPNI) says that its storage terminal in Fujairah, United Arab Emirates, is now operating at 100 percent capacity.

Speaking during the bunker firm's fourth-quarter and full-year earnings call, E. Nikolas Tavlarios, President of Aegean Marine Petroleum Network, said: "I'd like to provide an update on our Fujairah Oil Terminal. Our storage facility continues to operate at strong efficiency levels and is now performing at 100 percent capacity."

Tavlarios also alluded to difficulties, saying: "The bunkering market in Fujairah is, however, facing headwinds due to low prices and Iranian oil which has flooded the market with supply."

"We believe this market will return to equilibrium and remains an important part of our global supply network," Aegean's CEO added.

Commenting on leasing income from the Fujariah facility, Tavlarios said: "What we're seeing happen now - and it's happening slowly and some good little signs of it, but again, it's starting to happen - it's the rates creeping up. And as they should, and it really comes after having a year of experience of being an operator and seeing and the customers gaining confidence. But again, it's a big market there, but I think we're seeing the rates start to creep up. They will grow in the future.

"So I would say that as we look at what the contribution is of the Fujairah storage facility, it's essentially in line with what we expected and what we've talked about in the past."

Back in August, during the company's second-quarter conference call, Tavlarios had stated that Aegean was on target to reach 100 capacity by the end of 2015. At the time, the facility had a lease rate of 86 percent.

In terms of earnings before interest, tax, depreciation and amortization (EBITDA) contribution, the terminal was said to be on track to reach a figure of around US$12 million to $15 million per year, based on figures provided by Tavlarios.

Aegean's CEO commented during the second-quarter call: "I think we are still on track to see Fujairah getting to its $15 million level that we spoke of, right. So at $15 million you are talking about somewhere around $1.20 to $1.25 per month. So on that basis, again, you're going to be somewhere in that whole neighbourhood of - let's just say $3 million a quarter."

Tavlarios also said last year that margins from engaging in blending at the Fujairah facility were "somewhere between $5 and $10 a tonne on every tonne that's done from blended fuel".

"So as we begin to overlay that into our product mix there, we would expect our performance in that port to further improve," he added.


Renewable ammonia project pipeline by region chart. Clean ammonia project pipeline shrinks as offtake agreements remain scarce  

Renewable ammonia pipeline falls 0.9 Mt while only 3% of projects secure binding supply deals.

Global Ethanol Association (GEA) logo. Thoen Bio Energy joins Global Ethanol Association  

Shipping group with Brazilian ethanol ties becomes member as association plans export-focused project group.

Geiranger Fjord, Norway. Norway enforces zero-emission rules for cruise ships in World Heritage fjords  

Passenger vessels under 10,000 GT must use zero-emission fuels in Geirangerfjord and Nærøyfjord from January 2026.

D-Flex PSV design render. Longitude unveils compact PSV design targeting cost efficiency  

Design consultancy launches D-Flex vessel as a cost-efficient alternative to larger platform supply vessels.

IBIA hiring graphic IBIA seeks advisor for technical, regulatory and training role  

Remote position will support the association’s IMO and EU engagement and member training activities.

Truck-to-ship LNG bunkering in Hammerfest. Barents NaturGass begins LNG bunkering operations for Havila Kystruten in Hammerfest  

Norwegian supplier completes first truck-to-ship operation using newly approved two-truck simultaneous bunkering design.

Everllence L70ME-GI engine. Everllence receives 2,000th dual-fuel engine order from Cosco  

Chinese shipping line orders 12 methane-fuelled engines for new 18,000-teu container vessels.

Sakura Leader vessel. NYK signs long-term charter deals with Cheniere for new LNG carriers  

Japanese shipping company partners with Ocean Yield for vessels to be delivered from 2028.

Ocean Legacy vessel. Sallaum Lines takes delivery of LNG-powered container vessel MV Ocean Legacy  

Shipping company receives new dual-fuel vessel from Chinese shipyard as part of fleet modernisation programme.

Gas Utopia vessel alongside Oceanic Moon vessel. Rotterdam bio-LNG bunkering surges sixfold as alternative marine fuels gain traction  

Port handled 17,644 cbm of bio-LNG in 2025, while biomethanol volumes tripled year-on-year.