Storing for the future

Oil firm establishes liquid storage facility company aimed at becoming major international player.

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By  John Irish Published  April 7, 2003

Emirates National Oil Company (ENOC) announced today (April 07) that it had created Horizon Terminals Ltd (HTL), an independent terminalling company to capture increasing regional and international demand for storage in the oil, chemical, LPG (liquefied petroleum gas) and vegetable oil sectors.

The company, which is fully owned by ENOC, will have an operating capital of US $50 million with turnover expected to reach a minimum of $100 million by 2008.

“This move streamlines the current terminalling assets and management of ENOC Group and helps us move forward into the international terminalling arena, which we have identified as a growth industry,” said Hussain Sultan, group chief executive, ENOC.

HTL is looking to set up and develop a network of terminals around the globe by acquiring or managing existing bulk liquid storage facilities. While it sets out to compete with more established industry players such as Vopak and Oiltanking, Sultain claims that the new company will also need to work closely with its peers, particularly in high-risk areas.

As the parent company, ENOC already possesses industry knowledge and owns smaller storage facilities in Dubai and Fujairah. Jerome F. Gelineau, chief operating officer, HTL said that the new firm had embarked on several feasibility studies for projects or expansion in both Egypt and Saudi Arabia.

“While these feasibility studies are underway, one of HTL’s main tasks will be to establish the company as a guarantee of independence and quality,” said Gelineau.

By 2008, HTL hopes to open up to larger investors with the possibility of floating the company on the Dubai Financial Market. However, this will undoubtedly depend on whether the company can firmly establish itself in its three main target areas of Singapore, the Benelux and naturally the Middle East and whether it can develop its business into untapped markets.

“Simultaneously, we will move on to niche markets, such as Djibouti, which we are investigating as a gateway to the wider horn of Africa,” said Sultan.

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