Regarded as the core of ENOC's operations, the STP segment lends impetus to ENOC's growth by maximising returns on midstream and downstream assets. STP leads the three vital operations of supply, trading and processing by promoting value added business propositions. The business segment plays a critical role in managing the supply side of ENOC's other operations at any geographical location. Operating two plants to international standards, the segment provides various refined products found at the ENOC/EPPCO retail network, at Dubai and other regional airports and within the local industry. The segment leverages the group's strategic position through supply and trading operations, thereby ensuring profitable supply economics integration with ENOC's asset positions. Driving its trading functions, the business identifies and taps into the right marketing outlets both in the UAE and internationally.
ENOC's refinery - the first refinery in Dubai - was established in 1999 and is based at the Jebel Ali Free Zone. The refinery currently has a capacity to process 140,000 barrels per stream day (bpsd) of condensate, which yields refined products such as naphtha, reformate, jet fuel, diesel oil, fuel oil and LPG for local and export markets. An upgrade project of the refinery was completed in 2010 at a cost of USD $850million for the production of reformate, and low sulphur naphtha through installation of a reformer and a hydrotreater. The group recently announced a 50% expansion project which comprises three separate packages at an estimated value in excess of US$1billion. The main package of the project will add a new condensate processing train to the existing facility, expanding its daily capacity to 210,000 barrels.
Additional processing units will also be added, including a new LPG/Naphta hydrotreater, an isomerisation unit, kerosene hydrotreater, and a diesel hydrotreator. These units will ensure that the refinery's fuel products, which include gasoline, jet fuel and diesel, are capable of meeting expanding domestic fuel demand, as well as for export purposes. The expected date for commercial production is Q4 of 2019.
The plant operates to the highest international standards and every effort is made to ensure minimal environmental impact through state-of-the art effluent treatment facilities. The legal entity within which this refinery resides in is ENOC Processing Company LLC ("EPCL").
Supply & Trading, ENOC's trading nerve centre, procures a cost-effective and uninterrupted supply of feedstock for the refinery as well as the MTBE plant, while identifying and establishing new international business opportunities.
An important function of Supply & Trading is to meet the supply requirements of ENOC's other business segments, such as Retail and Marketing, either from refinery production or through imports. Moreover, Supply & Trading also finds marketing outlets, through exports, for the surplus refinery production.
Responsible for gauging demand in both local and international markets, STP operates the supply of midstream and downstream gas products to ENOC/EPPCO retail network, local and regional airports as well as industrial sectors.
Strategic partnerships with governments, international oil companies and traders allow STP to identify and build a wide range of global business opportunities.
In 1999, ENOC started its trading operations in Singapore through Emirates National Oil Company (Singapore) Private Limited (ENOC Singapore). ENOC Singapore leverages its position in the global trading hub of Singapore to involve itself in the trading of oil products and the procurement of refinery feedstocks in international markets. It also conducts price risk management to mitigate risk for STP, as well as other ENOC segments such as Marketing.
From a trading and supply perspective, the primary risk relates to the availability of regular condensate feedstock. The segment maintains reasonable diversification in sources of supplies for condensate in the wake of potential disruption that may arise due to any eventuality.
Price volatility and counterparty credit-worthiness are other key risks facing this segment, and mitigating measures include hedging for exposure, thereby bringing the open position to an acceptable level as well as conducting regular counterparty reviews.
To ensure that sufficient, effective and efficient refining and processing capacities exist at all times, these facilities continue to make investments in expansion, also undertaking adequate measures - such as preventive maintenance programmes, updating of resource skillsets through continuous and relevant trainings, and EHS reviews - to mitigate the risks of plant breakdowns and/or operational disruptions. Regular EHS audits are of paramount importance to counter hazards at the processing units and inventory storage locations.
Adequate strategic and world-class operational policies and procedures are established and adhered to, with continuous compliance monitoring in respect of day-to-day functioning of the trading and operational units within the segment.
DUGAS provides efficient and reliable management and operation of gas processing facilities. Operations include the design, engineering and construction of the Dubai Government's onshore and offshore gas complexes consisting of platforms, pipelines, processing plants and terminals.Read More
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