ENOC recently signed an MoU with Emirates Environmental Group (EEG) to promote local environmental education. In what ways is ENOC implementing environmentally friendly sustainability practices in its operations?
True sustainability can only be achieved if we transform the way that businesses think and operate. ENOC is evolving in a way that aligns with this philosophy. We are keen participants in the UAE's environmental protection imperatives, working closely with the UAE Supreme Energy Council and Dubai Carbon on strategic initiatives of demand-side management, carbon footprint reduction measures, and contributing to energy diversification. Our approach is aligned with the goals of the Dubai Integrated Energy Strategy (DIES), which are to reduce energy demand by 30% by 2030 and to diversify the Emirate's energy mix. In 2008, we adopted a scientific Energy & Resource Management (E&RM) Policy and manual ahead of the launch of ISO 50001. We have also rolled out ambitious initiatives to reduce the company's carbon footprint. We opened the Middle East's first green service station and are working heavily on promoting the use of cleaner, greener fuels such as compressed natural gas (CNG) and biofuels as alternative automotive fuels. All of our service stations in the ENOC/EPPCO network are now providing ultra-low-sulfur diesel. This is in alignment with the UAE Federal Cabinet decree aimed at improving the UAE's standards of diesel fuel from 500ppm to 10ppm, whereby all commercial diesel vehicles and equipment motorists are to use the ultra-low-sulfur diesel that matches Euro 5 standards. There is a perception that green equals expensive, but from our experience this thinking is far from reality. The financial impact of ENOC's quick win efforts toward sustainability has been encouraging. An investment of AED600,000 has yielded savings of almost three times that amount. In terms of business plans, the expected annual savings is $6.9 million, with a payback period of just two years. Being green makes business sense, and we hope that organizations here and abroad realize this.
The aviation industry in the UAE is growing at an exponential rate What opportunities does this offer to ENOC?
We provide the jet fuel that powers aircraft that fly to and from Dubai. The expansion of the airport facilities led us to launch Project Falcon, a unique opportunity that will fulfill more than half of the total jet fuel demand of Dubai's two airports. Project Falcon is a 58km pipeline from our storage facilities in Jebel Ali directly to both airports, ensuring a safe, reliable, and consistent source of jet fuel for airplanes. Phase I, linking Jebel Ali and Dubai International Airport, has been operational since November 2015. The extension, which will link Jebel Ali and Al Maktoum International Airport, is currently being constructed and is expected to be complete by the third quarter of 2018.
ENOC also recently acquired Dragon Oil, and you operate across MENA, Asia, and Europe through more than 30 active subsidiaries and joint ventures. What is the impact of these projects?
The acquisition of Dragon Oil was a distinctive milestone in ENOC's growth story, making us a vertically integrated oil and gas player that is well positioned to strengthen our nation's energy security. This investment not only adds an upstream arm to ENOC, but also has significant potential for the emirate of Dubai as a whole. This combination allows ENOC to partner, compete, and grow with leading international oil and gas companies and regional national oil companies.