Wednesday, Apr 1, 2020
International Finance
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Adnoc to invest upto Dh1.5 bn to set up 60 new gas stations in Dubai

Adnoc gas stations
Currently, the majority of gas stations located in Dubai are operated by Emirates National Oil Company

Abu Dhabi National Oil (Adnoc) plans to invest between Dh1.1 billion and Dh1.5 billion to fund an ambitious new gas station expansion slated for 2020. As part of the expansion strategy, Adnoc plans to establish at least 60 new gas stations with over a third of them in Dubai, according to media reports.

Adnoc’s capital expenditure in 2019 was Dh508 million. Currently, the majority of gas stations located in Dubai are operated by Emirates National Oil Company (Enoc). Last year, Adnoc opened three gas stations in Dubai, resulting in a total of six gas stations operated by Adnoc in Dubai.

Adnoc plans to open between 20 and 25 gas filling stations in Dubai. The Abu Dhabi oil giant is also expanding into the Kingdom of Saudi Arabia, where it currently runs two gas stations.

Adnoc is looking to open stations in Egypt and targets India’s downstream segment. The media has reported that Adnoc plans to partner with Saudi Aramco for a mega refinery project in Ratnagiri in Maharashtra in India.

Adnoc is still in the nascent stages of defining its role in the project and is actively working with Aramco and Indian counterparts. Indian Oil, Bharat Petroleum and Hindustan Petroleum will be responsible for developing the mega refinery project.

Even Enoc announced in 2018 that it plans to expand into Saudi Arabia and open 45 new service stations over five years, media reports said.

Mohamed Al Hashemi, Adnoc Distribution’s CEO, told the media, “As we speak we have a handful of sites in Saudi that are clearing investment committee decision, we know exactly which sites, we know the volumes.”

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