Abu Dhabi National Oil Co., the UAE's largest energy producer, has launched its second trading arm, a joint venture with Eni and OMV that is focused on refined products, after starting up a unit specializing in crude trading in September.
ADNOC Global Trading, in which ADNOC has a 65% stake, Eni 20% and OMV 15%, has started operations in the Abu Dhabi Global Market, the UAE's capital financial center, ADNOC said in a statement Dec. 8.
"AGT offers a broader range of integrated services to its customers and enables ADNOC to further commercialize its refined product sales with new delivery, pricing and hedging options," ADNOC said. "AGT will work closely with ADNOC L&S, the UAE's leading shipping company, to provide greater access to ADNOC's global network of shipping and storage solutions. Traders will be able to offer bespoke arrangements including global delivery, shipping and storage of refined products where they are needed."
AGT's teams will trade light and middle distillates, including jet, naphtha, diesel, and gasoline as well as specialty products.
AGT will provide non-system feedstock supplies to ADNOC Refining, in coordination with ADNOC Trading, the parent company's 100% owned trading unit focused on crude that was launched in September.
Murban futures
In 2019, ADNOC awarded stakes in ADNOC Refining to OMV and Eni as the national oil producer embarked on expanding its downstream portfolio. OMV took a 15% stake, Eni 20% and the remainder was retained by ADNOC.
ADNOC joins a host of other Gulf producers that have launched trading units in recent years as they seek a slice of the lucrative market dominated before by oil trading and international oil companies.
The Intercontinental Exchange and ADNOC plan to launch Murban futures contracts on an Abu Dhabi exchange on March 29 after postponing the startup from the first half of 2020 due to the pandemic.
ICE and ADNOC first announced plans to start a derivatives trading platform in November 2019, to be hosted on the new ICE Futures Abu Dhabi, in partnership with nine international energy companies.
ADNOC and ICE are partnering with BP, GS Caltex, Inpex, ENEOS, PetroChina, PTT, Shell, Total and Vitol to launch IFAD in ADGM. The breakdown of shareholding has not been disclosed.
Murban will be the second physically delivered futures contracts traded on a regional exchange after Dubai Mercantile Exchange's Oman crude futures.
Murban is also a deliverable grade in the Platts benchmark Dubai and Oman crude assessments.
