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UAE fuel giant Adnoc makes global debut with Saudi Arabia stations

A service station each has been launched near Riyadh and in the Eastern Province

The UAE's Adnoc has expanded internationally for the first time by opening two service stations in Saudi Arabia [representational image].
The UAE's Adnoc has expanded internationally for the first time by opening two service stations in Saudi Arabia [representational image].

Adnoc Distribution, the fuel and convenience retailer arm of the state-owned Abu Dhabi National Oil Company (Adnoc) Group, has entered Saudi Arabia with two service stations near Riyadh and in the Eastern Province.

Licenses to own, operate, and manage service stations in Saudi Arabia were reportedly granted to Adnoc this April by the kingdom’s Ministry of Municipal and Rural Affairs.

The first of the two stations is on the Riyadh-Dammam highway, 40km away from the capital of Saudi Arabia. The second facility is located in Al Ahsa Governorate’s city of Hofuf. Both stations were put through “extensive reconstruction” to align them with Adnoc Distribution’s operational and branding requirements.

READ: Adnoc builder MMEC Mannesmann to create jobs amid UAE expansion

Commenting on the stations’ launch, Saeed Al Rashdi, acting chief executive officer of Adnoc Distribution, said: “This is an important moment in our company’s history – our first step into the international arena. We promised this to our investors a year ago and these openings mark the beginning of an exciting new chapter for our organisation.

“These initial two stations are significant in that they will enable us to interact directly with Saudi customers and, where necessary, tailor our services for this important market as we continue to look at options for growth.”

Adnoc’s entry into Saudi Arabia, according to Al Rashdi, would also help further strengthen the commercial and cultural ties shared by the UAE and Saudi Arabia.

The new stations mark Phase 1 of Adnoc Distribution’s commitment as outlined during the launch of its initial public offering (IPO) in December 2017, which included the expansion of its business both within its home market of the UAE as well as internationally. The firm is also reviewing additional opportunities to expand its international network, according to a report by UAE state news agency, Wam.

READ: Arabtec unit wins $142m Adnoc contract from Spain's Tecnicas Reunidas

One of the UAE’s largest employers and a major contributor to the Emirates’ economic output, Adnoc Group has been busy in 2018. This November, the company inaugurated its technologically advanced Taweelah Gas Compression Plant, located 50km north of Abu Dhabi city.

The plant will utilise up to 450 million standard cubic feet per day of sales gas and will ensure uninterrupted gas supplies to major industries in Abu Dhabi, in addition to Fujairah. Gas will be delivered to the facility by Adnoc Gas Processing’s recently installed Maqta-Taweelah pipeline.

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Construction Week - Issue 751
Oct 13, 2019