AD Ports Group to Develop Petroleum Storage Terminal at Khalifa Port

AD Ports Group and Oylz Terminals Sign 50-Year Deal for Clean Petroleum Storage at Khalifa Port

AD Ports Group has entered into a significant 50-year agreement with Oylz Terminals, a UAE-based company specializing in oil supply and distribution, to establish a cutting-edge clean petroleum storage facility at Khalifa Port.

AD Ports Group to develop petroleum storage terminal at Khalifa Port

Major Development for Khalifa Port

Under this partnership, Oylz Terminals will construct a 600,000-cubic-meter (cbm) tank storage facility at the Khalifa Port Logistics Hub. The project will be executed in two phases, strengthening the port’s infrastructure and solidifying its role as a crucial energy storage and trading center in the region.

Phase One: Laying the Foundation

The first phase, set to commence operations by mid-2027, will introduce an initial storage capacity of 300,000 cbm. This phase includes constructing dedicated berths to streamline docking and unloading for petroleum transport vessels. Additionally, an advanced pipeline network will be established to ensure seamless product movement to regional customers, enhancing the overall efficiency of the supply chain.

A key feature of this phase will be the integration of automated terminal management systems, enabling real-time inventory tracking and optimized storage operations. Designed to meet regional demand, Phase One will serve oil traders, refiners, and distributors while adhering to stringent safety and environmental regulations.

Strengthening Regional Energy Infrastructure

Saif Al Mazrouei, CEO of Ports Cluster – AD Ports Group, emphasized the significance of this project, stating, “This agreement reinforces Khalifa Port’s status as a strategic trade hub for the UAE and the wider region. The new liquid storage terminal will enhance our capabilities and attract more businesses looking for world-class infrastructure with direct access to global markets.”

Dr. Khalid Omar Mohamed Hamad Almidfa, Chairman of Oylz Terminals, shared his vision, adding, “This milestone project is a testament to our dedication to developing premier infrastructure. It not only strengthens Abu Dhabi’s position as a global energy hub but also supports Oylz Terminals’ continued expansion.”

AD Ports Group to develop petroleum storage terminal at Khalifa Port

Phase Two: Expanding Capacity and Capabilities

The second phase of the project, planned for future completion, will double storage capacity to 600,000 cbm. This expansion will offer greater operational flexibility and additional services such as product blending and re-export capabilities. Aligning with the UAE’s broader economic and trade diversification strategies, this initiative ensures the nation remains a key player in global energy logistics.

By attracting major energy industry players and enhancing logistics infrastructure, this initiative is set to boost investment in Abu Dhabi’s energy sector, creating new business opportunities and reinforcing the emirate’s standing as a world-class trade and energy hub.