Abu Dhabi: Abu Dhabi’s government-backed fuel retailer expects to more than double capital expenditure this year as part of a push to open at least 60 new gas stations.
Abu Dhabi National Oil Co. for Distribution PJSC will spend between Dh1.1 billion and Dh1.5 billion to fund an “ambitious new station delivery schedule” for 2020, the company said Wednesday in an earnings statement. Capital expenditure in 2019 was Dh508 million.
The company plans to open between 20 and 25 filling station in the neighbouring emirate of Dubai. While Adnoc Distribution dominates fuel retailing in Abu Dhabi, most gas stations in Dubai are operated by Emirates National Oil Co (Enoc). Adnoc Distribution opened three stations in Dubai last year, bringing its total there to six.
Outside the UAE, Adnoc Distribution is expanding in Saudi Arabia where it currently operates two gas stations.
“As we speak we have a handful of sites in Saudi that are clearing investment committee decision,” Chief Operating Officer Mohammad Al Hashemi told Bloomberg TV. “We know exactly which sites, we know the volumes.”
Dubai-based Enoc also plans to expand in Saudi Arabia; it announced plans late in 2018 to open 45 new service stations in the kingdom over five years.
Beyond Saudi Arabia, Adnoc Distribution targets growth in India and is “very actively looking at” opening stations in Egypt, Hashemi said.