UAE-based Gulf Petrochem is increasing its storage capacity in East Africa to take advantage of double-digit growth for some products in the region, Executive Director S. Thangapandian said.
Gulf Petrochem, whose main trading activities are fuel oil and bunkering, is in talks about to lease storage capacity in Dar es Salaam in Tanzania and Mombasa in Kenya, he said. The deal to lease about 100,000 cubic metres of storage capacity primarily for gasoil and gasoline will be finalized by December.
“The next decade belongs to Africa because that’s the market which is short. Tremendous opportunities are available there and assets are available at cheap rates,” Thangapandian said. Demand for gasoil and gasoline is growing by as much as 78%, he said.
In its home turf, Gulf Petrochem will spend USD 60 million to increase storage capacity by 270,000 cubic metres of capacity, from the current 412,000 cubic metres, in Fujairah. Some of this additional capacity should be ready by December 2016. The rest will be completed by March 2017.
Gulf Petrochem also has leased floating storage in Tanjung Pelepas in Johor, Malaysia.