ENOC - Annual Review 2017
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Annual Review 2017

enoc.com
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    Burhan Al Hashemi

    Managing Director,Marketing

    Operators need to be ready to adapt to advancing technology and to anticipate market shift. strategy
    Renewable energy largely tends to be viewed as electrical, solar, wind, etc., but hydrogen cannot be ignored. strategy
  • Renewable energy is an important alternative to fuel for many reasons – environmental considerations, the UAE government’s commitment to the Paris Agreement and being a leader in mitigating climate change, and the shift in public attitudes from fossil fuels and hydrocarbons to new technology.

  • Currently, renewable energy largely tends to be viewed as electrical, solar, wind, etc., but hydrogen cannot be ignored. Although the technology is still in its infancy, it will come – and when it does it will be a game-changer with huge impact. Operators need to be ready to adapt to advancing technology and to anticipate market shift – no matter how fast that happens.

  • The Marketing segment is evaluating a number of potential product mixes, which meet the twin objectives of addressing environmental concerns and meeting increasing demand.

The Marketing segment supplies the domestic and international markets through its diversified portfolio – gas, aviation, lubricants, and industrial products – that reaches customers in diverse business sectors, and even individual households. Products are distributed in more than 60 markets in the Middle East, Indian Subcontinent, South and Central Asia, and Africa.

Recent developments

After establishing a record of significant growth and success in the UAE, ENOC’s aviation business and impressive supply network has now grown to cover 150 airports across 24 countries.

In the UAE, ENOC Aviation serves a distinguished list of international airlines through an integrated supply chain – from procurement to shipping, refining, storage, distribution, and into-aircraft services. EPPCO Aviation refuels about 14 million litres to over 330 flights every day, which is more than half of all flights departing from Dubai International Airport.

New technology now saves up to 10 minutes of fuelling time for B737 aircraft, using a specially designed low-bed hydrant dispenser that is positioned directly under the aircraft’s wing. The low-bed also improves safety and efficiency by reducing the need for climbing ladders and pulling heavy hoses and equipment.

ENOC Industrial Products division has also successfully launched Biodiesel5, an advanced alternative green fuel product commonly used for diesel engines. The new product is produced from vegetable oil and waste cooking oil, lowering emissions, smoke and unburnt hydrocarbons. Investing in advanced alternative fuels demonstrates ENOC’s commitment to the UAE Energy Plan leading up to 2050, which targets an energy mix that combines renewable, nuclear and clean energy sources to meet the country’s economic requirements and environmental goals. By introducing Biodiesel5 in the commercial & Industrial segment, ENOC has pioneered yet another initiative amongst national oil companies in the region.

EMGAS introduced shrink-wrapped seals attached to LPG cylinder valves, including a hologram – the first time this feature has been applied in the UAE. The innovation reduces risks to users, maintains EMGAS brand image, and helps authorities to differentiate originally filled cylinders due to the fact that these seals are extremely difficult to duplicate.

EMGAS also launched lightweight composite cylinders that are safer than the traditional metal version. They are produced from helically woven fibres combined with resin, making them uniquely secure. Labelled explosion-proof, the cylinders can withstand double the pressure of regular metal equivalents.

ENOC aviation

ENOC Aviation, the specialised aviation fuels division of ENOC, has been a leading marketer and supplier of aviation fuel for commercial airlines, military and general aviation since 1995.

The aviation business also offers a range of commercial services to its customers, including market studies for start-up projects, fuel marketing to airlines, and fuel hedging, as well as comprehensive technical services. These include consultancy on quality control, operations and EHS issues; consultancy on design and upgrade of static and mobile facilities, including specifications; provision of aviation quality control and operations manuals; quality control and operations training; inspections; assistance in the design of refuelling vehicles and fuel systems; feasibility studies for new aviation fuel infrastructure projects; and project management services for grassroots projects and upgrades.

ENOC’s aviation business is comprehensively customer-focused, with care and quality of service at the heart of all activity. These hallmarks are firmly embodied in ENOC Aviation’s entire staff, technology, assets and systems, and are further reinforced by associate membership of the Joint Inspection Group. This dedication to quality is well recognised by airlines, with the organisation being awarded Best Regional Jet Fuel Marketer in Africa/Middle East for six consecutive years.

Joint venture with Chevron

EPPCO Projects, a joint venture between ENOC (51 percent) and Chevron (49 percent) is involved in aviation refuelling and lubricant marketing. EPPCO Aviation – the aviation segment of EPPCO Projects – transports, stores and delivers jet fuel into-plane and in-bulk to commercial airlines, military airbases and regular aviators at the Dubai, Sharjah and Fujairah international airports. The lubricants division markets ENOC and Caltex branded products to ENOC Fuel Retail and industrial customers in the UAE.

Joint venture in Saudi Arabia

United Gulf Aircraft Fuelling Company (UGAFCO) was established in 2003 as a joint venture between ENOC and Saudi Arabia’s Arabian Aircraft Services Company (ARABASCO). It currently offers refuelling services at the King AbdulAziz International Airport in Jeddah, Saudi Arabia (the second-busiest airport in the Gulf), and King Khalid International Airport in Riyadh. UGAFCO also has fuel supply arrangements for other domestic airports in Saudi Arabia. ENOC provides UGAFCO with fuel marketing and technical services. UGAFCO is headquartered in Jeddah and is managed by a Board of Directors comprising ENOC and ARABASCO representatives.

ENOC products

Lubricants

ENOC has developed its own range of high-quality branded automotive and industrial lubricants. These include various green products, such as Protec Green and Vulcan Green, highlighting its commitment to the environment. These are marketed through a distribution network covering more than 60 countries across the Middle East, South East Asia, CIS countries and Africa.

ENOC also operates a plant in Fujairah and another in Jebel Ali that manufacture lube oil and grease for ENOC, and undertakes toll blending for third-party clients. The combined design capacity of both plants is 260,000 MTs. Various expansion projects will further enhance production efficiencies in coming years.

Our extensive marine lubricants portfolio – and deep expertise in technical support for the maritime sector – alone spans more than 100 ports in 23 countries, providing specific solutions geared towards achieving optimal performance for the shipping industry.

Industrial Products

ENOC Industrial Products division expanded its customer base, which resulted in significant market share growth, especially in Northern Emirates, by 7 percent in the last two years.

In 2017, ENOC Industrial Products division installed two significant and strategic fuelling sites for DP world and started ‘Fuel management system’ (RFID) for RTA. Both services are testament of ENOC’s commitment to identifying smart and innovative solutions for its customers.

ENOC Industrial Products division caters for the energy needs of government and private sectors by offering quality petroleum products, solutions and services made to the highest international standards and backed by a powerful supply chain with more than 30 years’ expertise in the UAE. The product range includes ultra-low-sulphur diesel, fuel oil, bitumen, kerosene and unleaded gasoline. The business is among the first to introduce 10 ppm diesel to its large customer base in the UAE, in support of the UAE’s sustainability agenda.

ENOC Industrial Products division also deals with onshore bunkering at various ports in the UAE. The products and delivery services include marine fuels for local and international shipping such as container liners, tankers, automobile carriers, supply boats, and naval and coastguard vessels.

EMGAS

ENOC has been one of the main drivers behind Dubai’s advance towards economic and sustainable development over the last 30 years, including investing in alternative fuels such as LPG.

We have acquired a proven track record with Emirates Gas (EMGAS) in our pursuit of smart and clean energy solutions, helping support Dubai’s efforts to win a global bid to host the 2020 edition of the prestigious World LPG Forum, hosted by the authoritative World LPG Association (WLPGA). LPG will take centre stage as evidence that investment in sustainable, cleaner fuel technologies is transforming the industry.

EMGAS has state-of-the-art bottling plants in the UAE and caters to the cylinder market, supplying LPG and propane to bulk customers such as hotels, industries and residential complexes. With the largest distributor network in the country, the company provides prompt and convenient delivery of cylinders to private customers, and follows a comprehensive cylinder repair, maintenance and replacement programme for consumer safety.

EMGAS also supplies Emirates Gas Aerosol Propellant (EGAP) and Cutting Edge Gas (CEG) to domestic clients. The company is committed to promoting clean fuel in Dubai through the introduction of CNG as an alternative fuel for transportation. Through exports and joint ventures, EMGAS is actively pursuing growth opportunities abroad.