War reaches India Inc as fire reported at JSW Infra oil storage terminal in Fujairah

MUMBAI: JSW Infrastructure Ltd has become the first Indian company to be directly affected by the ongoing US-Israel-Iran conflict following a fire at its oil storage terminal in Fujairah, United Arab Emirates (UAE).

Local media reported that an Iranian drone was seized over the Fujairah Oil Industrial Zone (FOIZ) on Tuesday morning. The wreckage of the seized drone triggered a fire at the JSW Infrastructure facility, which was later brought under control.

Mumbai-based JSW Group did not immediately respond to Mint’s queries.

JSW Infrastructure, through its subsidiary JSW Terminal (Middle East) FZE, had acquired the Fujairah liquid storage terminal from Swiss commodity trader Mercuria Group in November 2023. The facility has 15 storage tanks with a total capacity of 465,000 cubic meters; This tank is enough to hold approximately 3 million barrels of oil, roughly equivalent to one day’s crude production of the UAE.

Fujairah is a major refueling hub, handling a significant portion of the UAE’s oil exports. Storage terminals in the area are primarily used to store fuel for overseas supply.

Previously, Iran attacked Saudi Arabia’s Aramco Ras Tanura oil refinery in an effort to pressure the United States by targeting its allies. As the conflict entered its fourth day, civilian areas and Dubai International Airport were also attacked. The crisis started with Israel’s attack on Iran last Saturday.

Part of the diversified JSW Group, which produces steel, cement, paints and automobiles, JSW Infrastructure is India’s second largest private port operator, specializing in maritime infrastructure. In the UAE, it operates a liquid storage terminal and two dry cargo terminals in Fujairah.

The company went public in 2023 and its market capitalization exceeded 2023. ₹52,000 crore.

While Indian markets were closed for Holi on Tuesday, JSW Infrastructure shares fell 1.37%. ₹It was at 251.35 on Monday, amid a broader selloff linked to unrest in West Asia. The benchmark Sensex fell by 1.29% on the same day.