Horizon Terminals, a subsidiary of Emirates National Oil Company (ENOC), has secured a $100m loan to partly finance the development of a new bulk liquid petroleum terminal in Dubai, UAE.
The ten-year Islamic term financing facility for the $142m terminal was signed with Standard Chartered Bank, Emirates NBD and Noor Islamic Bank.
Loan proceeds will also go towards the construction of a second 60km jet fuel pipeline between the new bulk liquid petroleum terminal in the Jebel Ali Free Zone and Dubai International Airport, ending at its associated tank farm with a 141,000m³ storage capacity.
ENOC chief executive officer Saeed Abdullah Khoory said the financing agreement is a strong testament to the local and international banking sector’s confidence in the project’s business model and strong cash flow potential.
"The new bulk liquid petroleum terminal in Jebel Ali is set to energise Dubai’s fast-growing aviation sector and is of strategic importance to Dubai’s economic diversification initiatives," he added.
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By GlobalData"This new terminal will support the growing needs of Dubai International Airport, the Al Maktoum International Airport and Dubai’s increasing energy needs as it moves towards further economic growth."
The pipeline is expected to be commissioned in the second half of 2013 and will link to the Al Maktoum International Airport in Jebel Ali. The terminal is scheduled to be in service in the fourth quarter of 2013.
ENOC, which already has a 58km pipeline directly linked to the Dubai International Airport, expects that the development of the supporting infrastructure including the new terminal will help meet the demand for growing jet fuel.
Image: Horizon Terminals broke ground on the bulk liquid petroleum terminal in May. Photo: ENOC Company.