Saudi Arabia's Arabtank Terminal (ATTL) is boosting its oil storage capacity at the Red Sea coast port of Yanbu by 580,000 cubic meters, industry sources said on Wednesday. The new storage facility will take capacity at the terminal to 851,200 cubic meters, of which more than 90 percent is expected to be designated for oil products. “This will be for oil mostly, and it will be segregated ... which is for both clean and heavy oil products,” a source familiar with the project said. Construction of the new storage tanks will start in the fourth quarter and will take about 24 months to complete, sources said. Kuwait-based trader Independent Petroleum Group (IPG), which has a 36.5 percent share in Arabtank, is expected to be the primary lease holder of the new tanks at the terminal. Wall Street bank Morgan Stanley was also expected to sublease the tanks.
