ADNOC Distribution to build lube blending plant in Kizad

ADNOC Distribution, the first UAE government-owned company specialising in the marketing and distribution of petroleum products, plans to build a lubricants manufacturing blending plant at Khalifa Industrial Zone (Kizad). The company plans to start with an output capacity of 100,000 tonnes by 2022 and double that capacity later.

ADNOC Distribution said it would also build “strategic storage warehouses” to support product distribution in different emirates.

The new facility is being built partly to provide a back up to the Mussaffah Terminal facility on the western side of the city, as well as to provide employment and economic diversification under the country’s Vision 2030 plan.

The plant will produce automotive, marine and industrial lubricants, as well as greases and speciality fluids.

“We have [a] clear direction for expansion,” said Saeed Mubarak Al Rashidi, ADNOC Distribution’s acting chief executive. He added, “we are keen to enter strategic partnerships … to search for opportunities that will support our need to meet growing demand.”

The new Kizad facilities will be in partnership with Abu Dhabi Ports, with the two parties signing a “Mustaha agreement” to give 50-year land rights for the plant operator, with the possibility to renew for another 50 years.

ADNOC Distribution’s facility will also include a jetty to receive products from the ADNOC refinery at Ruwais, about 278 kilometres southwest of the capital. The refinery’s capacity was doubled last year to 800,000 barrels per day.