Montfort wins bid for Uniper's Fujairah bunkering business – Reuters

Swiss commodity trading company Montfort has emerged as the top bidder for German gas company Uniper SE’s marine fuel oil business Uniper Energy DMCC (UED) in Fujairah, UAE, multiple sources familiar with the matter told Reuters.

PHOTO: Getty Images

The companies are in the process of finalising the deal, and its purchase value is pegged at around $80 million, according to Reuters citing sources.

UED operates a refinery at Port of Fujairah, the world's third-largest bunkering hub, with a total capacity to produce about 5 million mt/year of marine fuels with a sulphur content of 0.50% (VLSFO) and 0.10% (ULSFO). It also started supplying 10% and 20% biofuel-VLSFO blends in 2021 in partnership with Dubai-based Neutral Fuels.

On its official website, Uniper states that its marine biofuels and low-sulphur fuel oils serve around 50% of the Middle East bunker market. Its other major markets are South and East Africa, India, Singapore, China, and Europe.

Uniper SE, majority owned by Finnish firm Fortum Oy, is selling off UED as part of the European Commission's €34.5 billion ($36.7 billion) recapitalisation plan. The deadline for the deal is given as 2026.

UK-based energy trader BB Energy and Switzerland-based energy major Vitol were also in the running for Uniper's stake in UED.

By Konica Bhatt

Please get in touch with comments or additional info to news@engine.online