Page 12 - DMEA Week 23 2022

DMEA NEWS IN BRIEF DMEA

Deal to evaluate clean Green Innovation Fund Project (Large-scale
COMPANIES shipping facilities in the UAE as a part of
Litasco considers moving hydrogen supply chain demonstration of an MCH supply chain)
which was adopted by the National Research
trading HQ to Dubai between UAE and Japan and Development Agency, the New Energy
and Industrial Technology Development
Litasco, the trading arm of Russia’s second- The three companies Abu Dhabi National Oil Organization (NEDO) Mitsui has been
largest oil company Lukoil, is considering Co. (ADNOC) of the UAE, ENEOS Corp., developing and participating in liquefied
moving its trading headquarters from Geneva and Mitsui & Co., Ltd., have formed a Joint natural gas (LNG) projects in the UAE with
in Switzerland to Dubai in the UAE, according Study Agreement to begin evaluating the ADNOC since the 1970s, and since 2017,
to two market sources. development of a clean hydrogen supply chain through participation in the Advanced
The sources said the trading arm is between UAE and Japan. Hydrogen Energy Chain Association for
considering the move as increasingly more The project aims to be developed in Technology Development (AHEAD), the
Russian oil is moving away from Europe and two phases, with first phase utilizing by- company has engaged in R&D for the large-
into Asia, a trend set to increase as the EU product hydrogen from ADNOC’s system in scale transportation and storage of hydrogen
phases out Russian seaborne imports. Ruwais Industrial Area in Abu Dhabi, while using MCH. In contributing to this project,
Singapore, where Litasco already has Phase 2 envisages greenfield blue hydrogen Mitsui will draw on the knowledge and
a major trading operation at Marina Bay production from natural gas. The hydrogen experience gained through these LNG and
Financial Towers, is the primary trading hub will be transformed to methylcyclohexane hydrogen-related operations.
for Asia, but most major trading outfits also (MCH), an efficient form of hydrogen The three companies aim to establish
have offices in the Middle East, mainly Dubai. transport vector to export to Japan. The a stable and economically viable supply
Litasco, which is not subject to Western three companies will conduct technical chain of clean hydrogen, leveraging their
trade sanctions or other measures aimed and engineering verification of a hydrogen respective assets as well as their accumulated
at Moscow, has seen its European business production facility with a capacity of 50,000 technologies and knowledge to achieve carbon
dwindle as many buyers and refiners in the tons per year, and a feasibility study on the neutrality.
region have sharply reduced their dependence potential to expand this facility to commercial It can be transported and stored using
on Russian oil. production of 200,000 tons per year. existing refinery facilities such as tanks, pipes,
Prior to Russia’s invasion of Ukraine, ADNOC is accelerating its efforts in and wharfs, as well as petroleum and chemical
Litasco would trade around 3 million bpd of decarbonization, and in this regard CCUS transportation infrastructure such as chemical
crude and refined products, including Russian options are being explored with an aim to tankers and lorries.
and non-Russian origin oil, according to S&P establish a highly competitive blue hydrogen ENEOS
Global. supply business utilizing existing facilities
Many of Litasco’s employees in Geneva such as refineries and petrochemical plants.
have recently been asked whether they will be As part of these initiatives, ADNOC will be REFINING
willing to relocate to Dubai. responsible for the hydrogen production
The firm already has a presence in Dubai, component of this joint feasibility study. Nigerian military destroys
based in the Dubai Multi Commodities One of the ENEOS Group’s envisioned
Centre (DMCC), which hosts a wide array of goals stated in Long-Term Vision to 2040 40 illegal refineries
commodities, trading and financial firms. is contributing to the achievement of a
This includes a number of smaller oil low-carbon, recycling-oriented society, and The Nigerian Army destroyed 40 illegal
trading outfits, which have filled the vacuum ENEOS Group are aiming to achieve carbon refineries and arrested 21 people in a
created by the large trading houses exiting neutrality. ENEOS, is working to build a continued clampdown against oil theft in the
Russian markets. CO2-free hydrogen supply chain, will lead oil-rich Niger Delta Region, the Ministry of
QCI the verification of MCH production and Defense said.

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