Enoc transfers storage assets to new subsidiary

Emirates National Oil Company (Enoc) has transferred its storage assets to its new subsidiary, Horizon Terminals Limited, said chief executive Hussain Sultan.

Enoc has identified the terminal business as a growth market and decided to include it in its portfolio of activities. It has also decided to expand its terminal business beyond the Middle East.

Towards that end, Sultan invited participation from global majors engaged in the terminal business.

Sultan, who was addressing the annual bunkering conference here, added that the terminal business will improve the profitability of Enoc's asset base and help it to offer value addition to its customers in the bulk liquid logistics chain.

Enoc is determined to develop Horizon Terminals as a strong brand in the terminal business, said Sultan.

Enoc launched a new independent storage terminal operator in May this year to take advantage of a major vacuum in the terminal business worldwide.

Horizon Terminals Limited will create, acquire and manage bulk liquid storage facilities in the oil, chemicals, LPG and vegetable oil sectors starting from the Middle East and expanding it further to the Far East and North Africa region.

According to Sultan, Horizon Terminals Limited intends to become a regional player within five years.

Enoc has floated Horizon with a $50 million capital but it is open to selected investors interested in participating in the venture, said Sultan.

The company has also kept open an option to raise additional capital from regional or international financial institutions whenever needed in future.

He said Enoc is now looking for potential locations in the Middle East, Far East and Africa to expand its terminal business through Horizon Terminals.