Montfort in Talks to Sell UAE Fuel Oil Facility to Sinopec
(Reuters) — Geneva-based trading house Montfort Group is in discussion to sell part or all of its refining facility in the United Arab Emirates to the fuel oil arm of Chinese state giant Sinopec Corp., at least five industry sources told Reuters.
If reached, a deal would give Sinopec, the world's biggest refiner by capacity, a stronger foothold in the UAE's Fujairah market, which it entered last year amid plans to expand its global presence in the marine fuel market.
Sinopec is considering investment in the refining facility as it seeks to expand its sales at the world's third-largest bunker fuel hub, the sources added.
Sinopec did not respond to a request for comment.
A Montfort spokesperson said the company and its partner in the refinery, Sheikh Ahmed Dalmook Al Maktoum, "remain fully committed" to the business.
"Of course, if we are approached by parties who wish to be involved in our refinery business, we are always willing to discuss such opportunities if we believe that it would enhance and grow our business," the spokesperson said.
Located in the port of Fujairah, the facility can process 65,000 barrels per day of crude, with capacity to sell over 30 million barrels of low-sulfur fuel oil to the shipping industry annually, according to Montfort.
Montfort acquired the crude oil processing and marine fuel trading business last year from Germany's Uniper Energy in a deal valued around $80 million. Montfort holds a Fujairah bunker supplier license under Montfort Trading FZE.
Sinopec opened an office in Dubai last year for marine fuel trading in Fujairah, though it does not have a bunker license there.
Sinopec Fuel Oil, the biggest marine bunker supplier at Chinese bunker hub Zhoushan, became the third-largest marine fuel supplier at the world's top bunker hub Singapore in 2023, while expanding its storage capacity in Asia.
The Chinese company has been looking to expand globally as slowing economic growth and rapid adoption of electric vehicles in the world's top auto market dents domestic demand.
Related News
Related News
- Phillips 66 to Shut LA Oil Refinery, Ending Major Gasoline Output Amid Supply Concerns
- FERC Sides with Williams in Texas-Louisiana Pipeline Dispute with Energy Transfer
- U.S. Appeals Court Blocks Kinder Morgan’s Tennessee Pipeline Permits
- ConocoPhillips Eyes Sale of $1 Billion Permian Assets Amid Marathon Acquisition
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- U.S. Appeals Court Blocks Kinder Morgan’s Tennessee Pipeline Permits
- Malaysia’s Oil Exports to China Surge Amid Broader Import Decline
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Marathon Oil to Lay Off Over 500 Texas Workers Ahead of ConocoPhillips Merger
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
Comments