Abu Dhabi: Abu Dhabi National Oil Company (Adnoc) Distribution is continuing discussions with Dubai officials to potentially develop up to ten service stations in the emirate, its chief executive said on Wednesday.
Abdullah Salem Al Daheri said Adnoc Distribution has already confirmed two sites but would wait until more locations were found and approved before moving ahead with the project.
Al Daheri was speaking to the media at the Abu Dhabi Air Expo.
He said that Adnoc Distribution would need to wait until five locations were approved in order to make the project feasible. Once the minimum of five locations are confirmed, Al Daheri said Adnoc Distribution will float a tender for the construction of the service stations.
He did not say the value of the tender Adnoc Distribution could offer.
Development of a greenfield petrol station is a significant investment that can take up to 15 months to be constructed, Al Daheri said. On average an Adnoc Distribution service station costs Dh20-Dh40 million to be built. This figure includes all amenities and facilities on the site.
Separately, Adnoc distribution is set to open a marine service station along Dubai Creek. The station will provide refuelling to boats. The site has been approved, Al Daheri said, and is separate to the ten locations Adnoc Distribution is targeting in Dubai. No timeframe on when the marine service station will open was given.
Adnoc Distribution is making significant investments to re-brand service stations it has acquired in the northern emirates.
The company has 72 former Emarat sites in the northern emirates to re-brand, which Al Daheri said will be completed in the next 18 months. It has re-branded two sites.
Adnoc Distribution is looking to follow up its service station expansion into Saudi Arabia with a division of its aviation fuel supply.
“We will not supply our product. We will supply our services,” Al Daheri said.
In 2013, Adnoc Distribution increased the amount of aviation fuel supplied by 16 per cent, he said.