DUBAI – Emirates National Oil Co. is building a lubricant and grease blending plant in Fujairah, United Arab Emirates, with capacity to produce 105,000 metric tons per year. Scheduled to be completed by the middle of next year, the facility is designed to help Enoc expand in the marine lubricant market.
Enoc officials discussed the facility last week during the Fifth ICIS Middle Eastern Base Oils and Lubricants Conference here. Now under construction, the facility is housed in a 10,000-square-meter building in the Fujairah Free Zone. The Free Zone provides customs exemptions, along with access to infrastructure, which should help make output from the blending plant cost-competitive.
In addition, the plants proximity to Fujairahs sea port provides access to the Middle East, Africa and the Indian subcontinent.
Marine oils supplied [through the] Enoc Fujairah plant will have logistic as well as price competitiveness compared to Rotterdam and Singapore, said Salah Galadari, chief operating officer of Enoc International Sales LLC. This will be our objective while operating our plant.
An 800 meter pipeline will connect the plant to the port, and the plant will use it to receive base oils and additives and to transport finished products to the port. The plant will have in-line blending and simultaneous metering and blending equipment, allowing it to supply bulk volumes directly to sea-going vessels, as well as land-based clients. It will have the ability to fill automotive and industrial lubricants in bulk containers, drums and small packages.
Dubai-based Enoc said it expects the plant to be used by private label blenders, as well as itself.
Marine lubricant sales through Fujairah totaled 145,000 tons last year and are growing at an average annual rate between 5 percent and 7 percent.