UAE, Japan extend crude storage deal
10 Nov 2014
(MENAFN) The United Arab Emirates’ Trade Ministry said it has signed a memorandum of cooperation with Japan, approving of the Gulf country to continue storing crude in Japan for at least three more years, Gulf Business reported.
The agreement, will allow UAE, which is the number 2 crude supplier, easy access to Asian markets while giving Japan priority access to reserves if Japan is in short supply of crude.
The first storage agreement was signed between the UAE and Japan since 2009, which gave the UAE the ability to store crude for free for five years.
The new deal allows UAE to have a free crude storage space of 6.29 million barrels at Kiire oil terminal in Kagoshima, southern Japan, which is an increase compared to the current space of 4.4 million barrels.