Abu Dhabi, U.A.E.-based ADNOC Distribution plans to build a lubricants manufacturing plant at Khalifa Industrial Zone (Kizad) in Abu Dhabi to service in­dus­trial and retail customers throughout the country.

The company, which is the petrol stations, motoring and industrial products distribution arm of Abu Dhabi National Oil Company, said it plans to build a plant with output capacity of 100,000 tonnes by 2022, with plans to reach up to 200,000 tonnes per year at an unspecified future date. The plant will make automotive, marine and industrial lubricants, as well as greases and speciality fluids.

ADNOC Distribution said it would also build “strategic storage warehouses" to support its distribution operations in different emirates.

The hub will also supply transport fuels – diesel, E Plus-91, Special 95, plus jet fuel to Abu Dhabi International and Maktoum International airports – as well as pipelining gasoil to the Al Taweelah power and desalination complex.

The agreement was signed by Saeed Mubarak Al Rashidi, Acting Chief Executive Officer of ADNOC Distribution and Mana Mohammed Saeed Al Mulla, Chief Executive Officer of Kizad, at ADNOC Distribution’s headquarters in Abu Dhabi.

“We have clear direction for expansion," said Saeed Mubarak Al Rashidi, adding that “we are keen to enter strategic partnerships … to search for opportunities that will support our need to meet growing demand".

The new Kizad facilities will be in partnership with Abu Dhabi Ports, with the two parties signing a “Mustaha agreement" to give 50-year land rights for the plant operator, with the possibility to renew for another 50 years.

Kizad, which spreads over an area of 418 sq. km, is located in Taweelah, between Abu Dhabi and Dubai and next to Khalifa Port.