Page 18 - DMEA Week 45

DMEA FUELS DMEA

ADNOC to start trading oil

products

UAE UAE national oil company (NOC) ADNOC International] allows us access to locations all
intends to start trading refined products in over the world.”
December through its joint venture with Italy’s ADNOC has significant storage capacity in
Eni and Austria’s OMV, CEO Sultan al-Jaber told the UAE, Japan and India, and agreed last year
a virtual conference on November 9. to acquire a 10% stake in VTTI, the owner of
ADNOC Global Trading (AGT) is 65%- 15 storage terminals in 14 countries. Com-
owned by ADNOC, 20% by Eni and 15% by bined, these facilities are capable of storing
OMV. The recently formed venture began deriv- around 60mn barrels of crude oil and refined
atives trading in September with a focus on crude products.
oil. It had hoped to launch trading operations in Diversifying into trading is one of the key tar-
the second quarter of this year, but the coronavi- gets in ADNOC’s long-term strategy. The com-
rus (COVID-19) pandemic led to delays. pany produces some 40mn tonnes per year (tpy)
“Next month, we will begin trading the full of refined products and petrochemicals, and is
portfolio of our refined products,” al-Jaber said working on an expansion project at its Ruwais
at the ADIPEC conference. complex.
ADNOC and its partners will focus on trad- The NOC is also looking to exploit current
ing refined products from the company’s 817,000 low costs for shipbuilding to expand its fleet.
barrel per day (bpd) Ruwais refinery. AGT has “ADNOC has always been a free-on-board
finished recruiting traders based in Abu Dhabi [FOB] seller. Shipping is a key part of it,” Salmeen
and is finalising its systems, al-Jaber said. said. “The current market provides opportuni-
ADNOC has global ambitions for AGT. ties. The price for second-hand and even new-
“The plan is to grow into Singapore, Europe build ships is competitive, probably a 10-year
and potentially gain a presence in the US,” low.”
ADNOC’s director for marketing, supply ADNOC Logistics & Services has some six
and trading said at the conference. “We start oil tankers and two oil/chemical carriers, and is
with a million-barrel refinery behind us, and aiming to expand its fleet to handle its parent’s
the relationship with [Vitol Tank Terminals growing needs. ™

P18 www. NEWSBASE .com Week 45 12•November•2020