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ADNOC has signed a long-term agreement with Emirates Global Aluminium (EGA), the largest industrial company in the UAE outside the oil and gas sector

EGA SIgning 2EGA will purchase most of the calcined petroleum coke produced by ADNOC Refining. (Image source: bcw-global)

Under the agreement, ADNOC will supply EGA with the majority of the calcined petroleum coke produced by ADNOC’s new Carbon Black and Delayed Coker, CBDC, facility in Ruwais, according to a statement by ADNOC.

Calcined petroleum coke is used by EGA in the aluminium smelting process. This new agreement will allow EGA to source up to 40 per cent of its calcined coke requirements from within the UAE, reducing its logistics costs and reliance on imports.

Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, said, “This agreement contributes to further increasing the local economic benefit generated from the UAE’s natural resources and deepens ties and integration between two of the UAE’s most important industries.

“It also underlines ADNOC’s commitment to driving economic growth and diversification in the UAE. This partnership will enable ADNOC to maximise the value extracted from every barrel of oil that is produced and processed.”

“ADNOC Refining’s Carbon Black and Delayed Coker complex is central to this strategy. It processes the heavy residue material left over from the refining of crude oil and converts it into more valuable refined products,” he added.

The agreement with EGA also represents the latest milestone in ADNOC’s efforts to eliminate the production of high-sulphur fuel oil (or ‘residue oil’) and become a ‘zero-fuel oil’ refining business. ADNOC made zero-fuel oil refining a priority in response to the International Marine Organisation’s, IMO, 2020 Regulations.

The regulations seek to limit the environmental impact of global shipping fleets by reducing the sulphur contents in marine fuels from 3.5 per cent to 0.5 per cent.