Adnoc and Emirates Global Aluminium sign long-term sales agreement
EGA to buy most of the calcined petroleum coke produced by Adnoc Refining
Abu Dhabi National Oil Company signed a long-term agreement to sell calcined petroleum coke to Emirates Global Aluminium, the UAE's biggest industrial company outside the oil and gas sector.
The agreement with Adnoc will allow EGA to source up to 40 per cent of its calcined coke requirements locally, reducing its logistics costs and reliance on imports, according to a statement on Wednesday. EGA uses calcined petroleum coke in its aluminium smelting process.
"This agreement contributes to further increasing the local economic benefit generated from the UAE’s natural resources and deepens ties and integration between two of the UAE’s most important industries," Dr Sultan Al Jaber, UAE Minister of State and Adnoc Group chief executive, said. "This partnership will enable Adnoc to maximise the value extracted from every barrel of oil that is produced and processed."
Last week, Adnoc announced additional hydrocarbon reserves of 7 billion "stock tank" barrels of oil and 58 trillion cubic feet of conventional gas and 160tcf of unconventional gas, taking the UAE to the sixth position from seventh globally in terms of hydrocarbon reserves, according to data listed by the US Energy Information Administration.
Adnoc Refining’s Carbon Black and Delayed Coker complex in Ruwais is central to the strategy of maximising value from oil production and processing, Dr Al Jaber said. The facility processes the heavy residue material left over from the refining of crude oil and converts it into more valuable refined products.
The agreement with EGA represents the latest milestone in Adnoc's efforts to eliminate production of high-sulphur fuel oil (or ‘residue oil’) and become a ‘zero-fuel oil’ refining business. Adnoc made zero-fuel oil refining a priority in response to the International Marine Organisation’s (IMO) 2020 regulations, which seek to limit the environmental impact of global shipping fleets by reducing the sulphur content in marine fuels to 0.5 per cent, from 3.5 per cent currently.
“Strengthening local supply chains that connect two of the nation’s most substantial energy and industrial exporters demonstrates the maturity of our economic base,” EGA chairman Khaldoon Khalifa Al Mubarak said.
Updated: November 13, 2019 05:42 PM