Emirates National Oil Co. announces new five-year growth strategy
Emirates National Oil Company (ENOC) has announced a new growth strategy aimed at serving Dubai’s growing energy needs, while simultaneously developing an integrated upstream and downstream energy value chain to drive future growth.
As part of its five-year strategy (2016-2021), the state-owned company will focus on fulfilling Dubai’s energy needs, through the expansion of its refinery and service station network, building oil storage capacity and increasing its market share in diesel fuel, jet fuel and liquefied petroleum gas (LPG).
“Our new strategy aims to achieve the sustainable development goals of Dubai, while promoting energy sector efficiency. Our integrated development model, ‘ONE ENOC’, will strengthen our operations and global footprint by drawing on synergies between our upstream and downstream business segments,” said Saif Humaid Al Falasi, Group CEO of ENOC.
“Over the past decade, primary energy consumption in the Arabian Gulf has grown more than twice as fast as the world average of 2.5% per year. The UAE is witnessing a similar rise in consumption led by an increase in population and the need to drive infrastructure development. To address this, ENOC will work to achieve the goals of Dubai Plan 2021 through an innovative approach focused on product positioning as identified by our new growth strategy. Meeting the energy needs of Dubai is the primary objective of the Group, with a focus on developing synergies across the value chain to deliver world-class sustainable and integrated energy solutions,” said Saeed Al Tayer, ENOC vice chairman.
As part of ENOC’s long-term strategy, the board appointed Zaid Alqufaidi as the new managing director of ENOC Retail and Burhan Al Hashemi as the managing director of ENOC Marketing – two business units that have strong expansion plans.
The company will focus on expanding capacities in order to support domestic energy demand in alignment with Dubai Plan 2021 and in preparation for EXPO 2020. This includes a 50% capacity increase of ENOC’s Jebel Ali refinery to reach 210,000 barrels per day, as well as the construction of Project Falcon’s 19 kilometre jet fuel pipeline extension to Al Maktoum Airport by the end of 2018.
These projects reflect ENOC’s commitment to supply 60% of jet fuel volumes at Dubai Airports by 2050.
A key component of the Group’s strategic direction is to expand the retail network within Dubai to deliver an array of offerings, including non-fuel and other supplementary services. This includes ongoing renovation of major service stations in Dubai and the construction of 54 new stations by 2020.
International business development is the second key area detailed in the revised strategy. International business will primarily follow an integrated structure – as “ONE ENOC.” Pilot projects will be developed and tested to provide a cohesive business model for implementation across target markets.
ENOC operates across five different segments: Retail, Supply, Trading & Processing (STP), Marketing, Horizon Terminals and Dragon Oil. In 2015, the group’s sales volume of crude oil and petroleum products reached a historic high, surpassing 220 million barrels, representing a 16% increase over the previous year.