Abu Dhabi, UAE – April 22, 2019: The first-ever shipment of UAE-produced calcined coke has begun its maiden voyage to mainland China. 10,500 tons of calcined coke were loaded by ADNOC Refining, a subsidiary of the Abu Dhabi National Oil Company (ADNOC), onto the M/V Lucky Ocho, a vessel chartered by ADNOC Logistics & Services, to be delivered in Yantai, China by the end of April 2019.
The first shipment of this high-value product represents the latest milestone in ADNOC’s effort to reduce production of high-sulfur fuel oil (or ‘residue oil’) – and move towards being a ‘zero-fuel oil’ refining business. ADNOC made zero-fuel oil refining a high priority when the International Marine Organization’s (IMO) 2020 Regulation was first proposed – aimed at reducing the sulfur content contained in marine fuels from 3.5 percent to 0.5 percent – in an effort to limit the potential environmental impact of global shipping fleets.
IMO 2020 is expected to have a profound impact on the global refining and transport fuels industry. ADNOC commissioned, in September 2018, its multi-billion-dollar Carbon Black and Delayed Coker Unit. The Unit – which produced the UAE’s first-ever calcined coke, currently being shipped to China – allows ADNOC to extract the maximum value from sulfur-heavy ‘bottom-of-the-barrel’ oils and slurry, as it delivers on its Downstream strategy.
Jasem Al Sayegh, CEO of ADNOC Refining, said: “This milestone represents a significant step towards being a refining business capable of producing ‘zero-fuel oil’. ADNOC will continue to invest in an effort to broaden our product offering amidst evolving market conditions, ensuring we reduce our environmental footprint and maintain IMO-compliance leading up to 2020 and beyond.”
Increasing the flexibility of ADNOC’s refining assets to stretch the value of every barrel of oil – and produce additional feedstocks and additives for the petrochemical industry – is a key pillar of ADNOC’s Downstream expansion strategy, which was announced at its Downstream Investment Forum last year.
The strategy will see ADNOC become a world-class producer, supplier and trader of refined and petrochemical products, as it focuses on growth markets in Asia, including China.
ADNOC’s multi-billion-dirham Downstream investment program will see the company’s refining capacity increase by more than 65 percent, or 600,000 barrels per day (bpd), by 2025, through the addition of a third refinery, creating a total capacity of 1.5 million barrels per day (mbpd). The new refinery will significantly increase the capability, flexibility and output of Abu Dhabi’s refining operations by adding to the range of crudes that can be processed.
ADNOC also plans to build one of the world’s largest mixed feed crackers, which will enable it to produce additional feedstocks and additives for the petrochemicals industry.
ADNOC is a major diversified group of energy and petrochemical companies that produces about 3 million barrels of oil and 10.5 billion cubic feet of raw gas a day. Its integrated upstream, midstream and downstream activities are carried out by 14 specialist subsidiary and joint venture companies.
To find out more visit: www.adnoc.ae
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About ADNOC Refining
ADNOC’s oil refining business, was established in Abu Dhabi in 1999. ADNOC Refining is a prominent oil refining company both regionally and internationally. It operates the Ruwais and Abu Dhabi refineries, which produce over 40 million tons per year of refined products for the local and export markets. With a total processing capacity of 922,000 barrels per day. ADNOC Refining supply a diversified range of petroleum products, including LPG, naphtha, gasoline, jet fuel, gas oil and base oils, and Petrochemical feedstock and propylene, in addition to specialty products such as Carbon Black and Anode Coke. ADNOC Refining continually invests in new technologies to improve its facilities, boost productivity and deliver operational efficiency.
About ADNOC Logistics & Services
ADNOC Logistics & Services provides world-class shipping, maritime and logistics, serving ADNOC and international customers. ADNOC Logistics & Services is a crucial link in the ADNOC supply chain, delivering the Group’s oil, gas, petroleum and dry bulk products from Abu Dhabi to the world and also serving global customers. ADNOC Logistics & Services is 100% owned by ADNOC. To find out more visit www.adnoc.ae.