Dubai’s ENOC Will More Than Double Fujairah Lubricants Plant

Emirates National Oil Co., the government-owned refiner in Dubai, will more than double lubricants production capacity at a plant in the neighboring emirate of Fujairah over the next two years to boost exports.

The plant on the eastern coast of the United Arab Emirates is producing 100,000 metric tons of lubricants a year and the company will expand the facility’s capacity to make 250,000 tons of lubricants and grease by 2014, Zaid Alqufaidi, ENOC’s managing director for marketing, said today.

“We have great potential for export,” Alqufaidi said in an interview at the plant inauguration. The blending facility, which started production a year ago, exports about 60 percent of its goods to markets in Asia, Africa and the Middle East.

Fujairah is the U.A.E.’s main oil products port outside the Strait of Hormuz, a choke point for about a fifth of the world’s crude exports. ENOC and companies including Vitol group and Royal Vopak NV operate oil product storage facilities in the emirate. The port of Fujairah serves as the main regional ship refueling, or bunkering, and fuel import and export hub.

ENOC buys base oil from refiners in Europe and Saudi Arabia for blending with additives to create the lubricants, Alqufaidi said. Suppliers include Exxon Mobil Corp.’s Augusta refinery in Italy and Saudi Aramco Lubricating Oil Refining Co., a venture of Saudi Arabia’s state-owned oil producer, Muhammed Yunus, manager of the Fujairah plant, said during a tour of the facility.

To contact the reporter on this story: Anthony DiPaola in Dubai at adipaola@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.