UAE ADNOC signs crude oil storage agreement with Japan

The National Oil Company of Abu Dhabi (ADNOC) He has signed A strategic agreement to store crude oil in storage facilities in Japan, said the state oil company of Abu Dhabi, which pumps almost all of the oil into OPEC’s third largest producer.

Under the strategic agreement, which extends an earlier agreement that expired at the end of 2019, ADNOC will store more than 8 million barrels of crude oil in storage facilities in Japan and could market that oil as the Abu Dhabi company is entering in the oil marketing business. At the same time, ADNOC will ensure that some crude oil remains in Japanese facilities in case of oil shortage or emergency.

The new three-year agreement “contributes positively to Japanese energy security, while supporting Adnoc’s broader commercial ambitions,” Dr. Sultan Al Jaber, Minister of State of the United Arab Emirates and executive director, said in a statement. of the ADNOC Group, published by The National.

About a quarter of Japan’s crude oil imports come from the United Arab Emirates, while 90 percent of Japanese oil demand is met by imports from the Middle East region, according to Reuters estimates.

For Japan, poor in resources, the agreement is part of increasing its energy security, while ADNOC has access to more storage and trade opportunities in the world’s fastest growing oil demand market, Asia.

The National Petroleum, Gas and Metals Corporation of Japan (JOGMEC) last month renewed the lease of crude oil tanks with Saudi Aramco. The Saudi state oil giant will be able to store crude oil over the next three years in an installation in Okinawa, while Japan will preferably receive the crude oil in case of emergency.

In 2018, ADNOC announced its intention to expand downstream

operations inside and outside the United Arab Emirates, “to take full advantage of the growing demand for higher-value refined and petrochemical products, particularly in the growing economies of China and Asia.”

By Tsvetana Paraskova for Oilichelin

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