Page 14 - Downstream Monitor - MEA Week 24

DMEA
neWs in Brief
DMEA
hydrogen.
e announcement comes amid growing
international recognition of hydrogen’s bene ts. A report released last week by the International Energy Agency (IEA) concludes that hydrogen has vast potential to help the world reduce emissions while addressing its energy needs.
“ is pilot project represents an exciting opportunity for Saudi Aramco and Air Products to demonstrate the potential
of hydrogen in the transport sector and
its viability as a sustainable fuel for the future,” said Amin h. Nasser, President and Chief Executive O cer of Saudi Aramco. “Today’s milestone is an important step in making oil-to-hydrogen a reality as Saudi Aramco continues to be focused on creating breakthrough technologies and solutions as part of our long term e orts to reduce carbon emissions and address climate concerns.”
“It is well known that our world needs a sustainable system to address environmental challenges while also meeting growing energy demand. hydrogen and fuel cell technologies are well positioned to be part of the solution,” said Sei Ghasemi, Air Products’ Chairman, President and CEO. “We are honoured to collaborate with Saudi Aramco to establish and develop a sustainable, hydrocarbon-based hydrogen supply system for fuel cell vehicles in Saudi Arabia.”
e new fuelling station combines Saudi Aramco’s industrial and technological experience with Air Products’ know-how and experience in the eld of hydrogen fuelling.
Air Products’ proprietary SmartFuel® hydrogen fuelling technology will be incorporated into the new station to supply Toyota Mirai Fuel Cell Vehicles with compressed hydrogen. e data collected during the initial phase of this project
will provide valuable information for the assessment of future applications of this
emerging and diverse transport technology in the local environment.
It is expected that the eet of Toyota
Mirai vehicles will have a driving range of 500km with water as their only emission
and the ability to be fuelled in ve minutes
as opposed to an hour for traditional battery electric vehicles. is would demonstrate the potential of hydrogen fueled vehicles to make a signi cant contribution to a clean, secure, and a ordable energy future.
saUdi aramCo
PetroChemiCals
ADNOC and OCI to form fertiliser JV
e Abu Dhabi National Oil Company (ADNOC) today announced a new strategic partnership with OCI N.V. (OCI). OCI is a global producer and distributor of natural gas-based fertilizers and industrial chemicals, headquartered in the Netherlands. e partnership will see ADNOC combine its fertilizer business, ADNOC Fertilizers, into OCI’s Middle East and North Africa (MENA) nitrogen fertilizer platform to form a new joint venture (JV).
e JV will become the largest export- focused nitrogen fertilizer platform globally and the largest producer in the MENA region with a production capacity of 5 million tons of urea and 1.5 million tons of sellable ammonia. Annual revenues for the combined entity are $1.74 billion, based on 2018 pro forma gures. ADNOC and OCI will own a 42% and 58% stake in the JV respectively.
is combination brings greater geographic diversity to the platform’s MENA production channels, enabling greater combined market access to strengthen
market share and better serve its customers around the world. It will have a centralized commercial team, supported by a robust storage and distribution infrastructure with access to key ports on the Mediterranean, Red Sea and Arabian Gulf.
e JV will operate a young, state-of-the- art asset base with low maintenance costs and strong free cash ow generation. As a result, the company will be well-positioned to pay its shareholders attractive dividends and to fund future organic and inorganic growth opportunities.
In conjunction with this joint venture, ADNOC Fertilizers has also signed a new long-term gas supply agreement with ADNOC, which will provide its facilities in Ruwais with the required feedstock for its operations based on a competitive pricing formula.
e JV will be based in Abu Dhabi and registered in the Emirate’s international nancial centre, Abu Dhabi Global Market (ADGM), furthering the development of fertilizer expertise and trading in Abu Dhabi. e board of the new entity will consist of 6 members nominated by OCI and 4 nominated by ADNOC. h.E. Dr Sultan Ahmed Al
Jaber, UAE Minister of State and CEO of the ADNOC Group, will be Chairman of the Board.
Nassef Sawiris will assume the role of CEO of the JV, alongside his current role as CEO
of OCI. his leadership will be supported by
a joint management team of experienced key executives from OCI and ADNOC, which will drive value creation through the unlocking
of substantial operational, supply chain, marketing and trading synergies across the combined platform.
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Week 24 19•June•2019