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 directly affected by the ongoing US-Israel-Iran conflict, after a fire broke out at its oil storage terminal in Fujairah, United Arab Emirates (UAE).

Local media reported that an Iranian drone was intercepted over the Fujairah Oil Industry Zone (FOIZ) on Tuesday morning. Debris from the intercepted drone triggered a fire at the JSW Infrastructure facility, which has since been brought under control.

In a statement to the bourses on Tuesday evening, JSW Infrastructure confirmed that one of its 15 storage tanks at Fujairah was damaged by the debris from an intercepted drone. There were no injuries to the company’s personnel. The remaining 14 tanks have been secured, the company said. The storage terminal has also been adequately insured, the company added.

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

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

Earlier, Iran attacked Saudi Arabia’s Aramco Ras Tanura oil refinery in an apparent effort to pressure the US by targeting its allies. Civilian sites and Dubai International Airport have also come under attack as the conflict enters its fourth day. The crisis began with Israeli strikes on Iran last Saturday.

JSW Infrastructure, part of the diversified JSW Group that produces steel, cement, paint, and automobiles, is India’s second-largest private port operator, specializing in maritime infrastructure. In the UAE, it operates one liquid storage terminal and two dry bulk terminals in Fujairah.

The company went public in 2023 and has a market capitalization exceeding ₹52,000 crore.

While Indian markets were closed on Tuesday for Holi, JSW Infrastructure shares had fallen 1.37% to ₹251.35 on Monday amid a broader sell-off linked to unrest in West Asia. The benchmark Sensex declined 1.29% the same day.