JSW Infrastructure Ltd Affected by US-Israel-Iran Conflict

Key Developments

• A fire broke out at JSW Infrastructure's oil storage terminal in Fujairah, United Arab Emirates (UAE), following the interception of an Iranian drone over the Fujairah Oil Industry Zone (FOIZ) on Tuesday morning.
• The fire has been brought under control, but the incident marks the first time an Indian company has been directly affected by the ongoing US-Israel-Iran conflict.

Company Background

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• JSW Infrastructure Ltd, a subsidiary of the JSW Group, acquired the Fujairah liquid storage terminal in November 2023 from Mercuria Group for an undisclosed sum.
• The facility, operated by JSW Terminal (Middle East) FZE, has 15 storage tanks with a total capacity of 465,000 cubic meters, equivalent to 3 million barrels of oil.
• JSW Infrastructure is India's second-largest private port operator, specializing in maritime infrastructure, and operates one liquid storage terminal and two dry bulk terminals in Fujairah.

Market Impact

• 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, while Indian markets were closed on Tuesday for Holi.
• JSW Infrastructure has a market capitalization exceeding ₹52,000 crore, making it a significant player in the Indian market.

Regional Context

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• The conflict between the US, Israel, and Iran has resulted in attacks on civilian sites and Dubai International Airport, with Saudi Arabia's Aramco Ras Tanura oil refinery also coming under attack.
• Fujairah is a major bunkering hub, handling a significant portion of the UAE's oil exports, and storage terminals in the region are primarily used to hold fuel for overseas supply.