The State Trading Organisation (STO) has said that it will introduce two 4,000-tonne fuel tankers to launch international bunkering services in the Maldives, starting on August 20.
Managing Director Shimad Ibrahim said that STO is collaborating with the Economic Council, the Ministry of Economic Development and Trade, and other relevant stakeholders to initiate international fuel bunkering in the northern region of the country. He also said that the service will initially operate offshore using two vessels, with plans to reclaim land and establish an onshore tank for future bunkering services.
Additionally, Shimad said that STO is working to relocate the fuel storage facility to Maagiri Falhu near Thilafushi from Funadhoo in Kaafu Atoll. He said that a new facility will store various types of fuel sold in the country. He also explained that a firm from Denmark has been hired as the consultant for the project. STO also signed a term sheet with multinational energy and commodity trading company Vitol Bunkers for the international fuel bunkering project on March 13.
Bunkering services involve supplying fuel to marine ships and vessels. The establishment of such services in commonly travelled maritime areas will attract boats to stop and refuel, making it a profitable venture. While the Maldives currently has a Gross Domestic Product (GDP) of USD 6.5 billion, the government projects that the new bunkering service will generate an additional USD 400 million, creating a new industry valued at USD 390 million.