Adnoc to set up new lubes and grease plant in Kizad

Adnoc Distribution and Abu Dhabi Ports signed a Mustaha agreement yesterday to strengthen fuel retailer’s capacity to develop new projects at Khalifa Industrial Zone (Kizad) and provide logistical support to its existing developments.

The agreement was signed by Saeed Mubarak Al Rashidi, Acting Chief Executive Officer of Adnoc Distribution, and Mana Mohammed Saeed Al Mulla, Chief Executive Officer of Kizad, in Abu Dhabi.

Adnoc Distribution will begin to implement a plan to set up a lubes and grease plant, as well as strategic storage warehouses to support product distribution operations in different emirates.

The company will commence its operations in the new location by the beginning of 2022.

The initial production capacity of the lubes and grease plant will reach 100,000 tonnes per year with the possibility to reach production up to 200,000 tonnes per year in the future. The main products output from the plant include Vehicle Lubricants, Marine Lubricants, Industrial Lubricants, Greases and various Specialty Fluids.

The storage warehouses will increase Adnoc Distribution’s ability to supply Abu Dhabi with different fuel products such as diesel, E Plus-91, Special 95 using cargo trucks.

It will also supply Abu Dhabi International Airport and Al Maktoum International Airport with Jet-A1 fuel as well as Gas Oil to Al Taweelah Power and Desalination Complex via pipelines.

Saeed Mubarak Al Rashidi said: “Within Adnoc Distribution’s future strategic plan, we have clear direction for expansion, both geographically and qualitatively in terms of the products, services and facilities we provide... Due to our belief in the importance of Abu Dhabi’s national economic agenda and in promoting partnership initiatives between different economic and investment bodies, we look at this agreement with Abu Dhabi Ports as a way to achieve the highest levels of economic value for both parties. This will be done through moving some of our operational facilities to the new site and establishing new expansive platforms, by taking advantage of the high level infrastructures of Kizad, which can support hosted industrial and investment projects of various sectors in the region and globally.”

According to the plans approved by Adnoc Distribution, the storage capacity to be provided by the new storage warehouse at Kizad will amount to 545,000 cubic meters, in which 75,000 cubic meters will be dedicated to storage of fuel such as E Plus-91. 105,000 cubic meters will store the Special 95, 180,000 cubic meters will be for diesel fuel, and 180,000 cubic meters will be for fuel for Jet A1 fuel. This repository is expected to serve as a full back-up in case of any disruption of operations at the existing Mussafah Terminal.

Through this agreement, Adnoc Distribution will allocate three logistical shipping lanes in which the first is linked to Khalifa Port, the second parallels the main logistical lane in Kizad while the third lane has been allocated towards going outside of the industrial zone. Terms of the agreement also included the allocation of a jetty at Khalifa Port to receive shipments of petroleum products from the Ruwais refinery.

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