ABU DHABI, Abu Dhabi National Oil Company (Adnoc), the UAE’s biggest energy producer — has merged its downstream business with its trading and marketing operations to create the Downstream Industry, Marketing & Trading Directorate.
The new unit “will be a critical enabler of the company’s goal to responsibly deliver the energy and energy products that the world needs, particularly in its core Asian market, where demand for refined and petrochemical products are set to grow over the next 10 years,” said S&P Global Platts, citing an Adnoc statement said.
In 2018, Adnoc announced plans to invest $45 billion with partners to develop its local downstream activities, including the expansion of its Ruwais refinery and petrochemical capacity in the industrial hub.
“The Directorate will also drive Adnoc’s activities to catalyze the UAE’s industrial development and economic diversification, overseeing the development of Ta’Ziz and the Ruwais Derivatives Park. This will strengthen the UAE’s position as a globally competitive chemicals hub and destination for foreign direct investment,” the company said.
Adnoc and ADQ, which announced the partnership last July, will develop the projects in the Ruwais industrial hub in the emirate of Abu Dhabi. Adnoc will hold a 60% stake and the remainder will be held by ADQ.
Development of Ruwais Derivatives Park will start in early 2021 with initial chemicals production expected to commence in 2025, Adnoc said on November 10, 2020.The new directorate will also spearhead Adnoc’s pivot towards hydrogen, the company said.
“The Directorate will also lead Adnoc activities to capitalize on the emerging global market for hydrogen, building on the company’s existing position as a major producer with existing infrastructure, partnerships and customer relationships,” it said.
“The new Directorate will govern Adnoc’s interests across its refining, gas processing, petrochemicals, product sales, shipping and integrated logistics and trading portfolio.”
Adnoc has been investing in its trading and marketing operations, following in the footsteps of other national oil producers such as Saudi Aramco.
Adnoc Trading, a new unit focused on trading oil, started operations in September in Abu Dhabi Global Market, the UAE capital’s international financial free zone. Adnoc Global Trading, an Adnoc joint venture with OMV and Eni focused on trading of refined products, kicked off operations also in ADGM in December. – TradeArabia News Service