Emirates National Oil Co., Dubai’s government-owned refiner, agreed to buy 20,000 barrels a day of condensate from Qatar under an annual contract as it cuts fuel imports from Iran because of international sanctions.
The fuel, a light hydrocarbon liquid found with crude oil or natural gas, will supply Dubai’s Jebel Ali refinery, the company known as ENOC said. ENOC signed a contract to buy the fuel from Qatar International Petroleum Marketing Co., known as Tasweeq, the companies said in an e-mailed statement today.
“We are looking to strengthen the volume of spot cargo from third-party suppliers in the Gulf region and Far East,” ENOC Chief Executive Officer Saeed Khoory said in the statement. ENOC cut imports of condensate from Iran by 20 percent in the second half of 2012 compared with the first six months of the year, it said.
ENOC is seeking new suppliers of condensate to replace imports from Iran because U.S. sanctions threaten financial penalties for companies that trade with the country. ENOC, which already buys condensate from Qatar, operates the 120,000-barrel-a-day Jebel Ali refinery that processes condensate into jet fuel, diesel and gasoline reformate.
Dubai, the commercial hub of the United Arab Emirates, has bought condensate from Iran, one of the region’s main suppliers of the fuel before sanctions over Iran’s nuclear program curtailed trade with the country.
The U.S. and European Union have targeted Iran’s energy and financial industries to force a halt in a nuclear program they say could be used to develop atomic weapons. Iran says it wants nuclear energy for civilian use only.