Fujairah bunker barge loading halted by oil storage damage from debris
DEBRIS from a drone interception by UAE air defence systems on March 9 caused a fire at the Fujairah Oil Industry zone, disrupting bunker loadings on to barges at the port of Fujairah.
Inchcape Shipping Services, the appointed Lloyd’s Agents in UAE, today indicated that “Normal operations at the Fujairah Oil Tanker Terminal remain suspended until further notice.”
The oil terminal has a storage capacity of 1.18m cu m of crude oil, fuel oil, gas oil and gasoline. Its jetties can accommodate vessels from small barges of 3,000 dwt to larger vessels such as 300,000 dwt very large crude carriers.
The official note from authorities is that port and bunker operations continue as per usual, with Inchcape receiving no official notifications of any disruptions.
But indications from Lloyd’s List’s sources at the port show that there may be some disruptions.
“Terminals have stopped loading now, so suppliers will be supplying cargoes based on their respective balances on barges,” a bunker trader told Lloyd’s List.
These tankers will be unable to replenish fuels from the Fujairah Oil Terminal once they have been depleted, possibly raising concerns of a shortage in oil prices.
A Chinese shipmanager observed that operations have been intermittent because of the attacks.
He told Lloyd’s List: “We currently have a vessel in Fujairah. Feedback is that port operations and bunkering are still running normally, but operations are frequently paused due to drone activity and air strikes. There has been some impact, but business is still broadly continuing. That said, the port is now considered a war zone / high-risk area.”
Another bunker trader noted that bunker suppliers in Fujairah were not willing to sell bunkers unless enquiries were firm, suggesting that supplies are thinning.
It is unclear how long the storage terminal will suspend loading. UAE authorities indicated that the fire has been brought under control and normal operations have eased with no injuries reported.
Fujairah bunker prices have also risen sharply over the week, supported by the rise in crude oil prices and concerns of limited bunker availability.
The Baltic Exchange’s prices for Fujairah spot high-sulphur fuel oil prices rose 83% from $415 per tonne on February 26 to $761 per tonne on March 9. Very low sulphur fuel oil prices rose 79% from $506 per tonne on February 26 to $904 per tonne on March 9.
Spot prices for low-sulphur marine gasoil rose 72% from $773 per tonne on February 26 to $1,331 per tonne on March 9.
The oil storage terminal at Fujairah was also struck last week, with the terminal catching fire after being hit by falling debris.
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