Danish bunker and tanker group Monjasa is targeting new markets in the Gulf of Aden due to the improved security situation there.
It is also bringing in trade finance bank UBAF to help fund its expansion.
The company is opening a new base in Djibouti and expects a 200,000-tonne volume increase from the region next year.
"The objective is to challenge status quo and provide a valid alternative to the traditional Suez and Jeddah bunker markets," it said.
Djibouti is fast developing into an attractive bunker destination on the busy Suez waterway, it added.
Improved maritime infrastructure and heavy investments in port developments are expected to further advance trade going in and out of Northeast Africa in the future, it said.
“As the security situation in the Gulf of Aden is improving, new opportunities arise for both service companies and global shippers operating in the area. Having joined forces with a local partner, we are determined to demonstrate Djibouti as a competitive and high-quality refuelling option on this important sea route,” said group COO Svend Molholt.
As part of the set-up, Monjasa imports the products with handysize tankers, which also serve as floating storage for the operation. Currently it is using Maersk Tankers's 40,000-dwt Karen Maersk (built 2010).
UBAF is its new financing partner in the North-east African region.
“With Credit Agricole as its main shareholder, UBAF holds a high global credit rating," said Rasmus Knudsen, Monjasa group director of legal and treasury.
"Coupled with its 45 years of experience financing businesses in the Middle East and Africa region, we see a lot of synergies in this new partnership."
In November, Monjasa took on JP Morgan as its new banking partner in the US.
