Adnoc Distribution said the new plant will meet a growing demand in the region for its automotive and industrial lubricants, marine oils, greases and various specialty fluids. Adnoc Distribution will also build a 545,000-cubic meter warehouse for the distribution of diesel and other fuel products. The company distributes petroleum products throughout the U.A.E.

The Khalifa Industrial Zone, or Kazid, is a 418-square kilometer industrial park located near the Middle East Gulfs Khalifa Port, along a highway between Abu Dhabi and Dubai and near a road construction project that will give it access to the U.A.E.s largest inland city, Al Ain.

The agreement includes allocation of a jetty at Khalifa Port, allowing Adnoc Distribution to receive shipments from the Ruwais, U.A.E., base oil refinery that the companys refining division, Takreer, began streaming last month. A Takreer official told Lube Report in April that of the 600,000 t/y of API Group II and Group III base oils that the refinery will be able to produce when fully operational, approximately 50,000 t/y will be earmarked for Adnoc Distribution.

The companys acting CEO, Saeed Mubarak Al Rashidi, noted in the press release that the new site will set the company up for expansion and will help it achieve regional economic goals laid out in Abu Dhabi Vision 2030, which aims at integrating the region with global economies. This will be done through moving some of our operational facilities to the new site and establishing new expansive platforms, by taking advantage of the high-level infrastructures of Kizad, which can support hosted industrial and investment projects of various sectors in the region and globally.

The deal permits Adnoc Distribution to develop the land, which is owned by Abu Dhabi Ports, for a period of 50 years – the maximum amount under what is known in the U.A.E. as a musataha real estate agreement.

Adnoc currently operates a blending plant at its refinery in Umm Al Nar, U.A.E.