Adnoc chief wins New Silk Road CEO of the Year award
The award recognises industry leaders spearheading transformation of energy trading across Asia
Abu Dhabi National Oil Company group chief executive and UAE Minister of State Dr Sultan Al Jaber was presented with the New Silk Road CEO of the Year Award for his role in helping transform the company into a major player in East Asia.
The award recognises industry leaders spearheading the transformation of energy trading across Asia, particularly along the new arteries of trade known as the New Silk Route. The route includes 60 countries along the ancient trade pathways connecting China with Europe and Africa.
“The New Silk Road is reshaping the flow of global trade. By 2040, countries east of the United Arab Emirates will account for over two thirds of global GDP, becoming the world’s most significant drivers of energy demand," Dr Al Jaber said while accepting his award at the Gulf Intelligence Energy Markets Forum in Fujairah.
The world's second-largest bunkering hub, Fujairah is at the centre of Adnoc's plans to ensure better supply of crude to markets in the East and West.
Adnoc is building the largest single-site underground project for oil storage in Fujairah, with a capacity to store up to 42 million bpd of crude. The state oil company has 8 million bpd storage capacity in Fujairah, and the planned underground cavern will allow greater flexibility in supplying crude to global markets.
"Adnoc is leveraging the UAE’s unique geographic location at the gateway to this region, and Fujairah is a critical enabler of this strategy," said Dr Al Jaber.
"Fujairah’s expanding storage capacity provides a flexible response to shifting market dynamics and gives greater assurance in a complex energy landscape," he added.
In August, Adnoc acquired a 10 per cent equity stake in Dutch storage terminal operator VTTI, a deal that is set to widen its market access to Asia, Africa and Europe. Adnoc had said at the time it would also secure additional storage capabilities at Fujairah. The value of the transaction was not disclosed.
VTTI, in which Australia’s IFM Investors and Dutch commodity trader Vitol are stakeholders, with a 45 per cent interest each, owns 15 hydrocarbons storage terminals in 14 countries.
Fujairah, which faces the Gulf of Oman and is located outside the congested Strait of Hormuz, is an important storage facility for international and national oil companies. Storage capacity at the Port of Fujairah is expected to increase by 75 per cent from the current 10.5 million cubic metres by 2022, according to S&P Platts.
Updated: October 1, 2019 07:54 PM