Adnoc Distribution announced that it has signed a 50-year Mustaha agreement with Abu Dhabi Ports aiming to strengthen the former’s capacity to develop new projects at Khalifa Industrial Zone (Kizad) and provide logistical support to its existing developments.
The agreement is also expected to strengthen Adnoc Distribution’s efforts to meet demand for its services while meeting the requirements of Abu Dhabi Vision 2030, said Adnoc.
Accordingly, the company will begin to implement a plan to set up a lube and grease plant, as well as storage warehouses to support distribution operations in different emirates. The company will commence its operations in the new location by the beginning of 2022.
The plant’s initial production capacity will reach 100,000 tonnes per year, with the possibility to reach production up to 200,000 tonnes per year in the future.
The main products from the plant will include vehicle lubricants, marine lubricants, industrial lubricants, greases, and various speciality fluids.
The storage warehouses will increase Adnoc Distribution’s ability to supply Abu Dhabi with different fuel products such as diesel, E Plus-91, and 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.
Saeed Al Rashidi, acting chief executive officer of Adnoc Distribution, said in the statement that the company has plans for expansion both geographically and qualitatively in terms of products and services provided.
The storage capacity to be provided by the new storage warehouse at Kizad will amount to 545,000 cubic metres.