Adnoc co-loads LPG and propylene on same vessel to lower freight costs
State-owned company is harnessing technology to create efficiency
Abu Dhabi National Oil Company has co-loaded liquefied petroleum gas, which is used for cooking and in vehicles, and propylene, a building block for petrochemicals, onto the same vessel as the company looks to lower freight costs.
LPG, which is produced by Adnoc Gas Processing and propylene, which is produced by Adnoc refining, are usually transported separately, Adnoc said in a statement on Tuesday.
“This pioneering procedure, the first of its kind in our industry, has the potential to generate significant value for Adnoc,” said Abdulla Al Dhaheri, director of marketing, sales and trading.
“Shipping costs, or freight rates as they are more commonly referred to, constitute a significant amount when delivering a product to customers and end-users. By co-loading a product that is bound for a particular customer, or location, we are able to deliver substantial cost-savings.”
Adnoc is implementing a number of measures to lower costs and extract more value from each barrel of oil produced. The state-owned company is piloting a blockchain-based automated system with IT firm IBM to integrate oil and gas production across its entire value chain.
The collaboration with the US multinational will provide a secure platform for tracking, validating and execution of transactions at all stages, right from the production well to the end customer, helping to lower costs and increase efficiency.
Adnoc currently produces up to 10.5 million metric tonnes of LPG per year and up to 1.7 million metric tonnes per year of propylene.
Updated: December 11, 2018 11:56 AM