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Gulf Petrochem has entered into a sub-lease agreement with APM Terminals Pipavav to build its first oil storage terminal at the port of Pipavav in Gujarat, India.

In its first phase the company will establish a total of 300,000 cubic metres of tank storage for petroleum products (fuel oil, diesel, bitumen and base oil), chemicals and petrochemicals. Gulf Petrochem also entered into an MOU for subsequent phases of expansion.

Commenting on the terminal agreement, managing director Ashok Goel said: "This entry into India is very significant for the Gulf Petrochem group. It is the first oil terminal to be established outside the headquarters in UAE and it is our first foray into India through our subsidiary Gulf Petrochem India Pvt Ltd. We are happy that our entry into India with its huge growth potential is via APM Terminals Pipavav."

Gulf Petrochem India Pvt Ltd. is a subsidiary of Gulf Petrochem FZC, UAE. The parent company was established in 1998 and recorded a turnover of US$350 million in 2010. The company has experienced rapid growth over the past four years through the expansion of its six strategic business units: refining, grease manufacture, oil storage terminals, trading, bunkering and shipping.

The oil storage terminals business, which has synergies with Gulf Petrochem's other strategic business units (SBUs) has been identified as the spearhead of the group's infrastructure growth.

With an existing capacity of 60,000 cubic metres in Hamriyah, UAE, Gulf Petrochem is already building an oil terminal in Fujairah with a phase-1 capacity of 412,000 cubic metres at a cost of US$134 million.

"By the time phase-1 is ready in early 2012, we shall achieve a total capacity of 1 million cubic metres through other initiatives," said Harsh Sinha, Executive Director of Gulf Petrochem.

Gulf Petrochem's Fujairah oil terminal is designed for a total capacity of 1.2 million cubics for various petroleum products.

Fujairah, with its natural draft of 18 metres, is already the world's second largest bunkering hub and is experiencing rapid growth. Fujairah's new Oil Berth-2 was commissioned last year and Gulf Petrochem has been granted pipeline connectivity.