Enoc to Become Largest Emirates Producer

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Emirates National Oil Co. has increased its lubricants and grease blending capacity to 300,000 metric tons per year with the opening of a second facility in Jebel Ali, Dubai, last week.

Enoc, the United Arab Emirates state-owned oil company based in Dubai, announced that it commissioned its new 5,000-square meter facility in the Jebel Ali Free Zone on June 1.

With maximum production capacity of 50,000 t/y on a three-shift basis, the plant adds supplemental production and sales support to Enocs existing 250,000 t/y Fujairah Port facility in the Fujairah emirate. The Fujairah plant is one of the largest single blending facilities in both the Middle East and Africa, according to Enocs director of lubricants marketing, Mohammed El Sadek.

The new facility adds automated blending and metering systems, allowing for increased flexibility in production volume and product types, El Sadek said. The expansion will further enhance [Enocs] tankage for storing raw materials and finished products, and is aligned with Enocs strategy to expand operations in order to meet growing customer demand in local and export markets.

Enoc invested a total of $100 million on both plants, El Sadek told Lube Report. With both locations, Enoc is now the largest producer of lubricants and grease in the U.A.E., accounting for 20 percent of the 1.5 million t/y of overall production capacity in the U.A.E., El Sadek said.

U.A.E.s demand for lubricants is far lower than its domestic supply, however, at 200,000 t/y, according to El Sadek. Exports therefore make up 87 percent of U.A.E.-based lube producers sales, he said. With total demand in the Middle East at 2.6 million t/y, neighboring countries offer valuable export markets for Enoc.

Apart from Middle Eastern countries, such as those that are part of the Gulf Cooperation Council, Enoc exports primarily to Africa, Southeast Asia and the Indian subcontinent. In total, the production from Enocs U.A.E. plants is exported to over 60 countries.

Now, the company is looking to expand to additional locations overseas. Enoc will continue to invest in lubes production to support its aspiration to become a lead brand in international markets, El Sadek said. There is no actual geographic limit to such investments, and we are assessing options including South Africa, China and other locations.