Brooge Energy Limited (BROG): PESTLE Analysis [Nov-2025 Updated]

You're holding Brooge Energy Limited (BROG) and need a clear view: does the strategic upside in Fujairah outweigh the persistent risk in the Gulf? The direct takeaway is that BROG's Phase III expansion is a massive bet on Fujairah's status as the only major oil hub outside the Strait of Hormuz, positioning it to capture significant value from shifting global trade flows. Still, this opportunity is shadowed by geopolitical tension and the heavy 2025 fiscal year Capital Expenditure (CapEx) commitment. We'll map out the Political, Economic, Social, Technological, Legal, and Environmental (PESTLE) forces to give you the concrete actions you need right now.

Brooge Energy Limited (BROG) - PESTLE Analysis: Political factors

UAE government provides strong, stable support for oil and gas infrastructure.

The political environment in the United Arab Emirates (UAE) is a formidable asset for Brooge Energy Limited, providing a foundation of stability and strategic government backing for the energy sector. The UAE's federal structure, led by the ruling families, ensures a predictable, long-term policy framework, a huge advantage when you're managing multi-decade infrastructure assets like oil storage terminals. The government's commitment to the conventional energy sector remains absolute, despite the global energy transition.

This support is quantified by massive state-level investments. Abu Dhabi National Oil Company (ADNOC), for example, is pushing to increase its crude production capacity to 5 million barrels per day (b/d) by 2027. This upstream expansion directly translates into sustained demand for midstream services-storage, blending, and transport-in hubs like Fujairah, where Brooge Energy operates. Honestly, the government sees oil and gas as a strategic pillar, contributing approximately 30% of the UAE's Gross Domestic Product (GDP), so they are defintely incentivized to keep the infrastructure humming.

The political will also drives business-friendly regulatory reforms. Abu Dhabi's recent infrastructure pipeline, valued at over $55 billion, includes incentives like 100% foreign ownership and reduced energy costs, which lowers the operational friction for companies like Brooge Energy.

Geopolitical tensions in the Strait of Hormuz create a persistent transit risk premium.

Geopolitical instability, particularly surrounding the Strait of Hormuz, is a persistent risk that ironically creates a structural advantage for Brooge Energy due to its location. The Strait is the world's most critical oil chokepoint, with roughly 20% of global oil exports passing through it. When tensions rise, as they did in mid-2025, the market prices in a significant transit risk premium.

This premium is a clear, quantifiable cost of doing business in the Gulf. Analysts estimated in June 2025 that geopolitical tensions had added a $5-$10 per barrel premium to crude prices. For shipping, the war risk premiums for vessels entering the Gulf surged by 60%, rising from 0.125% to approximately 0.2% of a ship's value per transit. This translates to an additional cost of $200,000 to $360,000 per voyage for a Very Large Crude Carrier (VLCC). The market's fear is Brooge Energy's moat.

The following table illustrates the direct impact of this political risk on maritime costs:

Fujairah's status as a strategic, non-OPEC bunkering hub is government-backed.

Fujairah's strategic importance is not accidental; it is a direct result of government policy to create a secure, non-OPEC-affiliated energy gateway outside the Strait of Hormuz. Brooge Energy's operations are fundamentally tied to this political decision. The Port of Fujairah is the world's third-largest bunkering hub and a major storage center, boasting a total oil storage capacity of over 110 million barrels.

A key piece of political and strategic infrastructure is the Abu Dhabi Crude Oil Pipeline (ADCOP), which has a capacity of 1.5 million b/d and allows Abu Dhabi to bypass the Strait entirely for its crude exports. This capacity is a non-negotiable insurance policy for the UAE, and Brooge Energy, with its storage facilities, is a direct beneficiary of this strategic redundancy. The government's push for new, cleaner fuels is also evident, with Fujairah actively expanding its low-carbon shipping fuels capacity.

US-China trade relations indirectly impact global oil product flow and storage demand.

The fluctuating political relationship between the US and China, the world's two largest economies and oil consumers, creates volatility that impacts global oil product flow and, subsequently, the demand for storage. For Brooge Energy, this political tension drives a need for flexible, strategically located storage capacity in a neutral hub like Fujairah.

For example, earlier in 2025, escalating trade tensions cut global oil demand growth projections by a staggering 40%, reducing China's projected demand growth from 500,000-600,000 b/d to just 50,000-100,000 b/d. This demand slump creates an immediate need for floating and onshore storage to absorb the supply glut, increasing utilization rates for storage providers. Conversely, the October 2025 announcement of a trade deal framework caused Brent crude futures to rise 0.7% to $66.40 a barrel, signaling renewed demand expectations.

The political uncertainty also fuels China's strategy to build a stronger energy buffer, which is a direct driver of long-term storage demand. China is planning to add 11 new strategic oil storage sites with a total capacity of approximately 26.8 million cubic meters between 2025 and 2026. This global stockpiling trend supports the long-term business model of storage providers in key transit points.

• Demand volatility favors storage: Slower global growth due to trade wars increases the need to store surplus oil.
• Strategic stockpiling: China's plan to add 26.8 million cubic meters of storage supports global storage rates.
• Corporate action: Shareholders approved the sale of Brooge Energy's BPGIC FZE and BPGIC Phase III FZE interests in September 2025, a major corporate political move.

Here's the quick math on Brooge Energy's scale: its Phase I facility has a storage capacity of roughly 0.399 million m³. The recent shareholder approval in September 2025 to sell its core assets (BPGIC FZE and BPGIC Phase III FZE) to Gulf Navigation Holding PJSC is a massive, near-term political and corporate governance factor that fundamentally reshapes the company's future operational footprint and political exposure in the UAE.

Brooge Energy Limited (BROG) - PESTLE Analysis: Economic factors

Global crude oil price volatility directly affects storage utilization and lease rates.

You are operating in a market where volatility is the new normal, but Brooge Energy Limited's (BROG) core business model provides a significant buffer. The global crude oil market in 2025 remains a rollercoaster, driven by geopolitical risk and OPEC+ production decisions. For instance, the US Energy Information Administration (EIA) projected West Texas Intermediate (WTI) crude to average around $62.33 per barrel and Brent crude at approximately $66.00 per barrel for the year end. This downward pressure from building global inventories is typically a tailwind for storage demand, but extreme price swings can still affect the ancillary services revenue, which is a smaller but important part of the business.

Your current Phase I and Phase II storage facilities, with a total capacity of around 1 million cubic meters (or 6.3 million barrels), are fully contracted under multi-year take-or-pay agreements. This means the bulk of your revenue is fixed, insulating you from the daily spot rate fluctuations that crush less-prepared operators.

Contango market structures (future price > spot price) drive high storage demand.

The market structure-specifically, whether the oil futures curve is in contango (future price is higher than the spot price) or backwardation (spot price is higher than the future price)-is a direct driver of storage demand. When the market is in contango, traders make money by buying oil now, storing it, and selling a futures contract at a higher price. This is what fills your tanks.

As of November 2025, the Fujairah market shows a mixed, but generally favorable, environment for storage. Heavy distillate (fuel oil) stocks in Fujairah were at approximately 10.24 million barrels, a high level that points to strong underlying demand for storage. While the contango for some products like high sulphur fuel oil (HSFO) has narrowed slightly, the overall inventory build globally-projected to average 0.8 million barrels per day in 2025-suggests a structural need for tank space will persist.

The 2025 fiscal year CapEx for Phase III expansion is a major financial commitment.

The most critical financial event for Brooge Energy Limited in 2025 is not a CapEx commitment but a massive strategic divestiture. The company entered into a conditional sale and purchase agreement in May 2025 to sell its core operating subsidiaries, Brooge Petroleum and Gas Investment Company FZE and Brooge Petroleum and Gas Investment Company Phase III FZE, to Gulf Navigation Holding PJSC.

This transaction, valued at approximately $884 million (AED 3,245,000,000), shifts the financial profile from a capital-intensive developer with an estimated $1 billion Phase III CapEx to a holding company receiving substantial consideration. The new capital structure is key.

Strong US Dollar (USD) against local currencies impacts operational costs in the UAE.

Operating in the United Arab Emirates (UAE) gives you a financial advantage due to the currency peg. The UAE Dirham (AED) is fixed to the US Dollar at a rate of approximately 3.6725 AED per 1 USD. This stability virtually eliminates foreign exchange risk on your US Dollar-denominated revenues and your local operating expenses.

However, a strong US Dollar-and by extension, a strong AED-does affect the local economy and, indirectly, your labor costs. A stronger AED makes imports cheaper, which is a benefit for procuring foreign equipment or materials for maintenance. But, it can also impact the purchasing power of your expatriate workforce when they send remittances home, potentially leading to pressure on local wages over time.

High interest rates increase the cost of capital for future expansion projects.

Even with the divestiture, the broader high interest rate environment is a headwind for any remaining or future capital projects. The US Federal Reserve held its benchmark Federal Funds Rate in the range of 4.25% to 4.5% as of July 2025, with the 10-year Treasury rate around 4.47% in May 2025.

This elevated cost of capital (the rate at which you can borrow money) means that any debt financing for new ventures, or for refinancing existing debt, is significantly more expensive than in prior years. Your high leverage ratio, reported at 7.9 in May 2025, makes this even more critical.

• Elevated interest rates increase the cost of any new debt.
• The high leverage ratio amplifies the impact of rising financing costs.
• Higher rates reduce the present value of future cash flows in valuation models, defintely impacting the value of new projects.

Finance: Model the post-sale cash flow and mandatory convertible bond value by the end of the month.

Brooge Energy Limited (BROG) - PESTLE Analysis: Social factors

Growing global focus on Corporate Social Responsibility (CSR) pressures oil sector firms.

The global investment community is defintely pushing hard on environmental, social, and governance (ESG) factors, and this pressure hits oil sector firms like Brooge Energy Limited directly. We're seeing a massive capital shift away from pure-play fossil fuel infrastructure, so companies must show a credible path to sustainability or risk a higher cost of capital.

Brooge Energy Limited is responding to this by pivoting its strategy. The company is actively transitioning from its historical focus on crude oil and petroleum product storage to energy transition projects, most notably a planned green hydrogen and ammonia production facility in Fujairah as of April 2025. This strategic move is critical because it directly addresses the 'E' in ESG, aiming to mitigate the public and investor perception risk associated with its traditional business model.

Here's the quick math on the strategic shift:

• Old Business Perception: High-emissions, traditional oil storage.
• New Business Focus: Green hydrogen and ammonia production.
• 2025 Financial Context: The company reported revenue of approximately $76.47 million in its latest earnings report (May 2025), but the real story is the proposed sale of its traditional oil storage subsidiaries for a deal pegged at $884 million, which funds the new direction.

UAE's reliance on a highly skilled, diverse expatriate workforce requires competitive wages.

The UAE labor market is unique and highly competitive for specialized talent. You need to remember that expatriates make up about 88% of the total workforce, and attracting the right professionals-especially those with technical skills-demands top-tier compensation. The average salary in the UAE for 2024 was around AED 13,450 (US$3,663) per month, with projections for a moderate salary increase of about 4% in 2025, which sets a high baseline for any employer.

For a specialized infrastructure provider like Brooge Energy Limited, the competition isn't just local; it's global. To secure a high-performing team, the company must offer compensation that significantly outpaces the general market average, plus personalized benefits to aid retention.

Public perception of oil infrastructure projects faces rising scrutiny over safety and emissions.

While Fujairah remains a major global oil and gas hub with a project pipeline of nearly $9 billion, the public and regulatory focus on safety and environmental impact is intensifying. Any incident at a terminal, no matter how small, can quickly become a major social and financial liability.

The industry is already being pushed toward cleaner alternatives. Experts in Fujairah have urged caution on adding too much refining capacity, suggesting a focus on new energy projects like ammonia and methanol. This scrutiny means Brooge Energy Limited's existing oil storage operations face continuous pressure to demonstrate zero-incident safety records and minimal emissions, while their green hydrogen pivot is seen as a necessary move to align with future social expectations.

Labor market competition in Fujairah for specialized terminal operations staff is intense.

The Fujairah labor market, specifically for oil terminal operations, is a tight niche. You're not just competing with other oil storage providers; you're competing with the entire energy and logistics sector in the region, including major players like Emirates National Oil Company (ENOC). Securing and retaining specialized roles-like Control Room Operators, HSE Officers, and Terminal Managers-requires a substantial premium.

Here is a snapshot of the competitive salary landscape for key operational roles in the UAE, which directly impacts Brooge Energy Limited's cost of labor in Fujairah as of 2025:

The wide salary range for operators shows the premium placed on experience and specific certifications. You can't hire a mid-level Control Room Operator for the average rate; you'll need to pay closer to the senior end to pull them from a competitor. Finance: draft a retention bonus plan for all senior technical staff by month-end.

Brooge Energy Limited (BROG) - PESTLE Analysis: Technological factors

You're looking at Brooge Energy Limited's (BROG) technological position, and the direct takeaway is this: the company's core asset, the Brooge Petroleum and Gas Investment Company FZE (BPGIC) terminal, is fundamentally a high-tech operation, but the cost of maintaining that edge-especially in cybersecurity-is rising faster than ever. The efficiency gains from their current automation are significant, but staying ahead means continuous, high-cost investment in systems like advanced gauging and drone-based inspection.

Automation and digitization of terminal operations improve throughput efficiency.

Brooge Energy's subsidiary, BPGIC, differentiates itself by operating a 'highly automated terminal,' which is not just a marketing term; it translates directly into superior operational metrics. This digitization is crucial for maximizing throughput and minimizing product loss, which directly impacts their bottom line. For instance, the BPGIC facility is equipped with high-capacity pumping systems that achieve a throughput rate of up to 16,000 cubic meters per hour (M3/hour). This high speed is a key competitive advantage in the Fujairah bunkering hub, allowing for faster turnaround times for clients.

The company also utilizes a specialized stripping system, an automated process that minimizes residual product left in pipes and tanks after transfer. This technology reduces product loss by over 80%, which is a massive efficiency boost when you consider the scale of their operations, which total approximately 1 million cubic meters of geometric storage capacity across 22 tanks in Phase I and Phase II.

Cybersecurity threats to critical infrastructure necessitate continuous, high-cost investment.

The same digitization that drives efficiency also creates a significant, high-stakes vulnerability. In the energy sector, operational technology (OT) systems-which control the pumps, valves, and tank gauging-are increasingly connected to IT networks, making them prime targets for cyberattacks. Honestly, a breach here isn't just a data leak; it's a physical risk to the entire facility.

To mitigate this, Brooge Energy must allocate a substantial portion of its capital expenditure to cybersecurity. Here's the quick math: the overall cybersecurity spending for the energy industry is projected to reach US$10 billion by 2025. For a company like Brooge, which reported trailing twelve-month revenue of $76.5 million for fiscal year 2024, this high-cost investment is a non-negotiable operating expense. It's a constant arms race, and you can't afford to be cheap on your digital defenses.

Implementation of advanced tank gauging and inventory management systems is crucial.

To deliver on their promise of 'high accuracy blending services with low oil losses,' BPGIC must rely on state-of-the-art Inventory Tank Gauging (ITG) systems. These systems use technologies like radar or servo gauges to provide real-time, highly precise measurements of liquid level, temperature, and volume. A small error in measurement can mean thousands of barrels of product loss or dispute.

The global ITG system market, which is driven by the need for this kind of precision in the oil and gas sector, is valued at $682.3 million in 2024 and is projected to grow to $887.8 million by 2033, showing the industry's commitment to this technology. Brooge Energy's competitive edge depends on maintaining ITG systems that offer an accuracy level far superior to older, manual methods. This is essential for:

• Minimizing stock discrepancies.
• Optimizing blending operations for biofuels and refined products.
• Ensuring compliance with international trade and safety standards.

Use of drones for infrastructure inspection reduces maintenance costs and downtime.

While Brooge Energy's public filings don't detail their drone program, the use of Unmanned Aerial Vehicles (UAVs), or drones, for infrastructure inspection is a vital technological trend for any 'state-of-the-art' terminal operator as of 2025. Drones equipped with high-resolution and thermal cameras eliminate the need for costly and time-consuming scaffolding or cranes for inspections of large assets like storage tanks, which can be over 30 meters high.

The key benefit is a dramatic reduction in both cost and operational downtime. Drone-based inspections:

• Improve safety by removing personnel from hazardous, high-altitude environments.
• Reduce inspection time from days to hours, minimizing asset downtime.
• Capture thermal data to detect early signs of corrosion or structural defects, enabling predictive maintenance.

To be fair, integrating this technology requires specialized training and regulatory compliance, but for a terminal with large-scale storage capacity and a high throughput rate, the cost savings and safety improvements are defintely worth the investment.

Brooge Energy Limited (BROG) - PESTLE Analysis: Legal factors

Strict compliance with UAE federal and Fujairah Emirate commercial and labor laws is mandatory.

You operate in a complex legal environment, primarily through your subsidiary Brooge Petroleum and Gas Investment Company FZE (BPGIC), which is a Free Zone Establishment in Fujairah. This structure is subject to both the specific rules of the Fujairah Free Zone and overarching federal laws. For instance, the oil trading component is governed by Federal Law No. 14 of 2017 on Trading in Petroleum Products, which mandates strict adherence to safety and security standards and product specifications approved by the Emirates Authority for Standardisation and Metrology (ESMA). Failure to comply can result in imprisonment for up to one year and a fine between AED 100,000 and AED 500,000.

Labor compliance is also critical. The Federal Decree Law No. 33 of 2021, amended by Federal Decree Law No. 20 of 2023, governs employment relationships. This law eliminates unlimited contracts, introduces flexible work models, and clearly defines end-of-service gratuity payments, which directly affects your workforce management and financial liabilities. You must ensure all contracts and operational practices align with these updated federal labor requirements.

International maritime law and port authority regulations govern all vessel movements.

As a key midstream operator in the Port of Fujairah, the world's second-largest bunkering hub, Brooge Energy Limited's operations are inherently tied to international maritime law. This is non-negotiable. All vessel movements, bunkering, and cargo handling must adhere to the International Maritime Organization (IMO) conventions, including the International Convention for the Safety of Life at Sea (SOLAS) and the International Convention for the Prevention of Pollution from Ships (MARPOL 73/78). Port of Fujairah regulations, updated as recently as May 2025, are specific and carry immediate financial consequences.

For example, new local rules prohibit vessels fitted with open-loop scrubbers from operating in Dibba Port waters, forcing them to use compliant fuel, and discharge of carbon soot is explicitly banned, with fines at the Harbour Master's discretion. Your clients must maintain valid Protection and Indemnity (P&I) insurance from clubs accepted by the Fujairah Port Authority, a mandatory requirement that shifts risk management to the vessel owners but still impacts your operational flow. You need to be defintely sure your clients meet these stringent requirements before berthing.

Adherence to global sanctions regimes impacts which clients the company can service.

The company's strategic location outside the Strait of Hormuz makes it a critical node in global oil logistics, but this advantage comes with elevated sanctions risk. Brooge Energy Limited must meticulously screen all clients and transactions against the sanctions lists of the United States (OFAC), the European Union, and the United Kingdom. Recent actions in 2025 have intensified the focus on the energy sector, particularly targeting Russian oil majors like Rosneft and Lukoil and their associated 'shadow fleet' of tankers. You simply cannot afford a compliance failure here.

A breach of these economic sanctions programs could lead to severe penalties, including designation of the company or its vessels, asset freezes, and a complete loss of access to the US financial system. This risk is compounded by the company's past regulatory issues with the US Securities and Exchange Commission (SEC), which resulted in a $5 million settlement in December 2023 for inflating revenues by over $70 million between 2018 and 2021. This history means your compliance program is under a higher degree of scrutiny from US regulators.

Environmental permitting for the Phase III expansion required rigorous regulatory approval.

The planned Phase III expansion, which aims to add up to 3.5 million m³ of storage capacity and includes a new refinery, is a massive undertaking with an estimated total cost of around $1 billion. This project requires rigorous environmental permitting from both Fujairah Emirate and federal authorities, aligning with Federal Law No. 24 of 1999 on Environmental Protection and Development. The permitting process involves detailed environmental impact assessments (EIAs) for air quality, marine pollution, and waste management.

The legal and regulatory due diligence for this expansion was a key factor in the conditional sale of the BPGIC Group (including BPGIC Phase III FZE) to Gulf Navigation Holding PJSC in May 2025 for a total consideration of approximately USD 884 million. The sale's completion is contingent on clearing these complex legal and regulatory hurdles, which include securing all necessary permits for the construction and operation of the new storage and refinery facilities. The Port of Fujairah also mandates that every port facility must have a plan for managing various types of waste and contain a reception facility for oil residues and hazardous materials.

Here's a quick snapshot of the primary legal/compliance risks and their direct financial impact in the near-term:

The immediate action for your legal and compliance teams is clear:

• Finalize all regulatory approvals for the Phase III land and construction permits.
• Integrate the new UAE Labour Law provisions into all employment contracts by year-end.
• Update sanctions screening protocols to reflect the October 2025 UK/US/EU designations on Russian-linked oil entities.

Brooge Energy Limited (BROG) - PESTLE Analysis: Environmental factors

UAE's commitment to net-zero goals pressures the company to reduce its carbon footprint.

You're operating in a region that is rapidly pivoting its long-term energy strategy, and that creates an immediate pressure cooker for traditional oil storage. The UAE's commitment to its net-zero goals by 2050 is not just a policy statement; it's a direct business driver for Brooge Energy Limited.

The company has responded by making a major strategic shift, which is the key environmental opportunity right now. As of April 2025, the focus has transitioned significantly toward energy transition projects through its subsidiary, Brooge Renewable Energy Ltd. They have secured approximately 170,000 m² of land in Fujairah for a new green hydrogen and ammonia production facility.

This pivot is concrete: the Green Ammonia Project is projected to have a total capacity of 1,950 Tons Per Day (TPD), with Phase-I commissioning 300 TPD. This positions the company to produce approximately 685 Kilo Tons Per Annum (KTPA) of green ammonia, a crucial clean carrier for global decarbonization efforts. That's a huge, defintely necessary move to stay relevant in the coming decades.

Strict Fujairah regulations on ballast water and oil spill prevention are a constant operational focus.

Operating in the Port of Fujairah, the world's second-largest bunkering hub, means environmental compliance is a daily, non-negotiable cost of doing business. The local regulations are stringent, building on international standards like the MARPOL Convention (International Convention for the Prevention of Pollution from Ships).

The critical focus areas for Brooge Energy Limited's coastal operations include:

• Oil Spill Prevention: Terminal facilities must maintain robust response plans and spill prevention and control programs. The oil storage tanks themselves are designed with soil capable of resisting oil penetration and an oil leakage detection system to minimize environmental impact.
• Ballast Water Management: New IMO record-keeping standards for ballast water treatment were enforced in February 2025, leading to increased compliance inspections and potential penalties for non-compliance.
• Air and Water Pollution: Fujairah's rules prohibit the disposal of oils, toxic substances, and sewage in its waters. More recently, regulations in the Fujairah Port area, such as Dibba Port (as of May 2025), specifically ban the discharge of wash-water from open-loop Exhaust Gas Cleaning (EGC) units (scrubbers), which forces vessels to use compliant fuel or closed-loop systems.

Global push for cleaner marine fuels (IMO 2020 compliance) changes storage product mix.

The global shift to low-sulfur fuels, mandated by IMO 2020, has fundamentally changed the product mix in Fujairah, and this directly impacts Brooge Energy Limited's blending and storage services. The company is now a key player in storing and handling Clean Petroleum Products and Biofuels, alongside Crude Oil. This shift demands more complex blending operations and stricter segregation to prevent cross-contamination.

Here's the quick math on the shift, based on initial post-IMO 2020 inventory data from the Fujairah Oil Industry Zone (FOIZ):

The company's competitive advantage hinges on its high-accuracy blending services, which are more critical than ever to meet the precise specifications of VLSFO. This is a clear opportunity, but it requires continuous capital expenditure on tank maintenance and advanced blending technology to maintain product integrity.

Climate change-related weather events (e.g., storms) pose a physical risk to coastal assets.

The physical location of Brooge Energy Limited's assets in Fujairah exposes them to acute and chronic climate risks. Unlike the Arabian Gulf, the UAE's North-Eastern coast faces the Sea of Oman and the Indian Ocean, which means a significant risk of tropical cyclones and hurricanes.

This isn't a theoretical risk; the region has a history of severe weather events. The acute risk of a major storm surge or hurricane-force winds necessitates robust asset hardening and high insurance premiums.

The chronic risk is sea-level rise (SLR). Low-lying coastal zones in Fujairah are vulnerable to submergence and saltwater intrusion. Based on a 1-meter SLR scenario, an estimated 30.4 km² area in Fujairah could be affected, which poses a long-term threat to the integrity of coastal infrastructure, including oil storage terminals. This requires the company to factor in long-term coastal protection and resilience planning into its capital expenditure forecasts.

Next step: Operations team must complete a full physical climate risk assessment on the Phase I and Phase II facilities by Q1 2026.