JSW Infrastructure said on Tuesday that one of its 15 storage tanks at the Fujairah Liquids Terminal in the United Arab Emirates sustained damage after debris from an intercepted drone fell inside the facility’s premises, causing a fire that was later brought under control.

The incident occurred against the backdrop of the ongoing conflict between the US, Israel and Iran, which has increased security risks in the Gulf region. Local media reported that an Iranian drone was intercepted in the Fujairah Oil Industry Zone (FOIZ) on Tuesday morning. Debris from the interceptor is understood to have landed at the facility operated by JSW, causing limited damage.

The company said local authorities and their on-site security teams responded quickly to contain the situation. No injuries were reported at the terminal, and the remaining 14 storage tanks have been secured.

“Adequate insurance cover is already in place for the facility. A comprehensive technical assessment is underway to assess the structural impact and determine the restoration plan,” JSW Infrastructure said in a statement.

The Fujairah Liquids Storage Terminal, operated by JSW Terminal (Middle East) FZE, a wholly owned subsidiary of JSW Infrastructure, was acquired in November 2023 from Swiss commodities trader Mercuria Group. The facility consists of 15 storage tanks with a cumulative capacity of 465,000 cubic meters, equivalent to nearly 3 million barrels of oil, roughly equivalent to one day’s crude oil production in the United Arab Emirates.

Fujairah is one of the region’s most strategic energy hubs and a major global fuel hub, handling a significant portion of the UAE’s oil exports. Storage terminals in the area primarily hold fuel for overseas supply, making them critical nodes in international energy trade flows.

The latest incident adds to growing concern about the vulnerability of civil and energy infrastructure in the Gulf. In recent days, the conflict has expanded beyond direct military targets. Reports indicate that Iran previously targeted Saudi Arabia’s Aramco Ras Tanura refinery, while civilian sites and Dubai International Airport have also faced threats as hostilities intensified.

JSW Infrastructure, part of the diversified JSW Group with interests spanning steel, cement, paint and automobiles, is India’s second largest private port operator. The company specializes in maritime infrastructure and operates a liquid storage terminal and two dry bulk terminals in Fujairah.

As of 2023, JSW Infrastructure currently has a market capitalization of over Rs 52 billion. While the structural impact of Tuesday’s incident is still being assessed, the company said operations at the terminal remain under control and contingency measures are in place.

The episode underscores the spillover risks facing energy logistics infrastructure in the Gulf as geopolitical tensions continue to rise, with implications for regional oil flows and maritime security.