Montfort has emerged as the top bidder for Uniper Energy’s oil refinery in the UAE that produces low-sulphur fuel oil for the shipping industry, multiple sources familiar with the matter said this week, reports Arab News.
The deal could make Montfort one of the top two suppliers of ship fuel, also known as bunker fuel, in the world’s third-largest bunkering hub located in the UAE’s city of Fujairah, rivaling energy trader Vitol.
Montfort wins bid
Montfort’s purchase is valued at around $80 million, the sources said, and comes as embattled German utility Uniper is divesting assets to fulfill conditions set out by the European Commission in a 34.5-billion-euro ($37.36 billion) plan to recapitalize the company.
Under the deal, Montfort would take over Uniper Energy DMCC’s facility, which consists of two crude processing units specifically focused on providing low-sulphur, environmentally compliant bunker fuel that started commercial production in 2017.
That would give Montfort control of Uniper’s estimated market share of more than 40 percent in Fujairah, where nearly 8 million tons, 139,000 barrels per day, of marine fuel are sold annually, the sources said.
The companies are finalizing the deal, some of the sources said, although one source said the deal has been closed. Other companies that were also in the running were Vitol and BB Energy, the sources said.
Uniper and Montfort declined to comment.
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Source: Arab News