Horizon Terminals has signed a ten-year Islamic term financing facility of $US100 million with Standard Chartered Bank, Emirates NBD and Noor Islamic Bank.
The term partly finances the construction of a second jet fuel pipeline from the new bulk liquid petroleum terminal in the Jebel Ali Free Zone to the Dubai International Airport, and its associated storage tank farm with 141,000 cubic metres of capacity. The transaction has a dual tranche of United States dollars and United Arab Emirates dirham.
Emirates National Oil Company (ENOC) has an existing pipeline linked to the Dubai International Airport. With jet fuel requirements expected to increase significantly in the near future, ENOC is building supporting state-of-the-art infrastructure to meet the growing demand through the new $US142 million terminal.
The second pipeline is expected to be commissioned in the second half of 2013 and will also have a connectivity provision to the Al Maktoum International Airport in Jebel Ali.Article continues below…
ENOC Chief Executive Officer Saeed Abdullah Khoory said “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. The Government is focused on further strengthening the city as the region’s tourism and business hub, in which the aviation sector has a key role to play in.
“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. 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.”