ADNOC Distribution Signs a Fifty-year Mustaha Agreement with Abu Dhabi Ports
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April 19, 2024
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, at ADNOC Distribution’s headquarters in Abu Dhabi. The signing of the agreement was witnessed by a number of officials and senior members of both parties.
The agreement will strengthen ADNOC Distribution’s efforts to meet the great demand for its services and products while meeting the requirements of Abu Dhabi Vision 2030. 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 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.
Commenting on the agreement, Eng. Saeed Mubarak Al Rashidi, Acting Chief Executive Officer of ADNOC Distribution 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. As part of our objective to achieve the best results, we are keen to enter strategic partnerships and implement a range of specialised and targeted studies to search for opportunities that will support our need to meet the growing demand for our products and services.
Commenting on the agreement, Captain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports said: “ADNOC Distribution’s decision to be present at Kizad is a substantial and supportive move to Abu Dhabi’s economic growth and a vital addition to our strategic partners. We are confident that the strategic geographical location near Khalifa Port and what Kizad has to offer, in terms of logistical services and world-class infrastructure, will support ADNOC Distribution’s ability to meet the huge demand for petroleum products, which is one of the most prominent elements of economic and industrial projects.”
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.
ADNOC Distribution is a company owned by Abu Dhabi government specialised in the marketing and distribution of petroleum products in the United Arab Emirates where it operates a vast network of service stations and convenience stores that play a vital role in the Emirate’s economy and its social development programmes. The company is equipped with the most advanced technology for fuel, automated car wash and vacuuming, lube bay and tire repair as well as commercial products and services that cater to different industries such as construction and industrial.
Kizad, which spreads over an area of 418 sq. km, is located in Taweelah, between Abu Dhabi and Dubai and next to Khalifa Port. By offering trade, logistics and industrial solutions, Kizad supports economic diversification as mandated by Abu Dhabi’s 2030 Economic Vision. Abu Dhabi Ports actively contributes to the total non-oil GDP in Abu Dhabi.
