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Fri 9 Jul 2010, 13:52 GMT

ENOC stops bunkering in Fujairah


Supplier pulls out of Fujairah due to stiff competition from rivals.

ENOC Bunkering International LLC (EBIL), a wholly-owned subsidiary of ENOC, has ceased its bunkering activities in Fujairah, the world's second-largest bunker port.

The company, which operates under ENOC’s International Refining and Marketing (IRM) division and is owned by the Government of Dubai, is understood to have pulled out of the Fujairah marine fuels market due to competition from its business rivals and from other ports in the region.

ENOC ceased its bunker supply operations at the UAE port on July 1st. The company is estimated to have been selling approximately 200,000 tonnes per month before its decision to exit Fujairah.

A principal reason for the decision is believed to be the fact that ENOC does not own the barges it has been using to carry out deliveries, which then resulted in the company finding it difficult to compete with players with barges that are company-owned.

As a result, ENOC is estimated to have lost around $20 million from its bunkering operations in Fujairah since relaunching in 2009.

The company had previously stopped supplying marine fuel in Fujairah in May 2008 after splitting with its joint-venture partner, Kuwait-headquartered Independent Petroleum Group (IPG), which looked after the logistics operations of the business.

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