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Diesel exports from Abu Dhabi have picked up sharply as supplies that
were previously diverted to the domestic commercial fuel sector are
now being exported, according to a new study from PFC Energy.
Exports of the fuel, used in lorries, compressors and other heavy
equipment on construction sites, hit a two-year high in May, and will
spike again in August, according to estimates by PFC Energy.
The UAE consumed nearly all the diesel produced at Abu Dhabi’s two
refineries for much of last year, but delays at property developments
and industrial projects have shrunk the domestic market, pushing up
exports, analysts say. “A 34 per cent expansion in Abu Dhabi’s
distillate market last year amounting to a 15,000 bpd increase seems
like a distant memory,” PFC said.
Over the course of the year, exports are expected to double to an
average of 16,000 bpd, from 8,000 bpd last year. Domestic consumption
will still grow by 2,000 to 3,000 bpd this year, but the Abu Dhabi
National Oil Company (ADNOC) has expanded diesel production capacity by
10,000 bpd. ADNOC has offered diesel cargoes to international markets
several times this year. Late last month, ADNOC had tendered two August
shipments, comprising about 560,000 barrels. “Normally ADNOC is digging
through the market for any fuel it can find in the summer,” one trader
said.
“It is usually very tight at this time of year.” Total consumption of
all oil products, including diesel, petrol and jet fuel, is expected to
increase by 2 per cent in the UAE, a sharp drop from the 11 per cent
growth registered last year.
The new figure also represents a downwards revision of forecasts: in
April, PFC expected UAE demand to increase by 4.1 per cent in 2009.
Consumption will continue to grow in Abu Dhabi, but will shrink by 2
per cent in Dubai and the other emirates as a result of the economic
recession and a fall in the population of expatriates, PFC said.
Qatar’s market, which was growing by 30 per cent per year, will shrink
by 1,000 bpd, while Oman will also fall. Saudi Arabia, which saw
consumption increase by 35,000 bpd last year, is now forecast to
register an increase of 10,000 bpd.
PetrolWorld 090809
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