Insight Conversation: Saif Humaid al Falasi, ENOC Group

Saif Humaid al Falasi joined the Emirates National Oil Co. Group as general manager in 2008 after 25 years with the Abu Dhabi National Oil Co. He became ENOC Group CEO in March 2015. He also serves as a member of several entities developing the UAE's energy policies, including the Dubai Supreme Council of Energy, the Fuel Price Committee in Abu Dhabi and the Dubai Future Council of Energy.

Under Falasi's leadership, ENOC Group grew its refinery capacity by 50% to 213,000 b/d through an expansion project worth over $1 billion completed in 2019. The expanded Jebel Ali facility produces LPG, gasoline blendstock, jet fuel, diesel and fuel oil that meet Euro 5 specifications. ENOC currently supplies jet fuel to more than 200 airports across 22 countries. It operates 185 service stations in the UAE and more than 20 in Saudi Arabia. It also has a storage capacity of 6.68 million cu m to hold petroleum, chemicals and natural gas in the UAE, Morocco, Saudi Arabia, Singapore and Djibouti.

Falasi spoke to S&P Global Commodity Insights Editorial Lead Claudia Carpenter about several projects that are underway as he steers ENOC to help the UAE reach net zero by 2050.

What are some of the key projects ENOC is working on to help the UAE achieve its 2050 net-zero target?

Most recently, ENOC signed a memorandum of understanding with DEWA (Dubai Electricity and Water Authority) to develop and operate a joint integrated pilot project for the use of hydrogen in mobility. Green hydrogen is an environmentally friendly energy source, which represents one of the pillars of a sustainable future.

We also participated in an Emirates flight demonstration powered by 100% sustainable aviation fuel (SAF) by securing, blending and loading it.

Furthermore, we invested significantly in the Service Station of the Future, which incorporates multiple sources of energy and harnesses the power of renewables. Inspired by the ghaf tree, a carbon fiber canopy running on wind energy and sporting the deployment of various smart technologies, the first-of-its-kind in the world service station — which is now open to the public at Expo City Dubai — symbolizes the strength of innovation and indicates how sustainability and technology are intrinsic to the future of energy and a greener world.

The group has also prioritized sustainability within its own operations. In 2022 alone, ENOC Group achieved Dirham 8.6 million ($2.34 million) in savings from energy and resource management (E&RM) projects. The group's E&RM projects include solar photovoltaic panel implementation across its retail sites and various operations, in addition to LED retrofits, and the utilization of innovative sustainable solutions such as evaporative cooling, vapor and heat recovery systems.

ENOC Group has also banned single-use plastics across its operations as well as in its head office.

What is next after the Emirates flight demonstration using SAF in January?

We participated in this achievement by securing and blending SAF, which will help to secure this type of fuel in the UAE and the rest of the world in the future.

Investment in SAF in the years ahead will be key to supporting the global aviation industry to meet its energy transition goals. The use of SAF can result in up to an 80% reduction in the life cycle of carbon dioxide emissions and is widely considered in the global aviation industry as the most significant contributor to reaching its net-zero goal by 2050.

What is the status of the jet fuel pipeline to Dubai's Al Maktoum International Airport?

In 2022, we completed the construction of a 16.2 km jet fuel pipeline linking the Horizon Emirates Jebel Ali Petroleum storage terminal in Jebel Ali to Al Maktoum International Airport.

The pipeline, which was safely and successfully commissioned in July 2022, will carry 2,000 cu m/hour of jet fuel to Al Maktoum and will meet the demand for jet fuel at Dubai airports up until 2050.

Do you expect ENOC to be a part of Dubai's plans to sell shares in some government holdings?

At the moment we are not exploring any potential initial public offering but are open to the idea of exploring it in the future.

Has ENOC had to change the way it does business because of the energy transition?

Over the years, ENOC Group has supported the UAE's strategy to diversify its energy mix by combining renewable and clean energy sources that are visible across numerous service stations that are powered by solar energy today.

What is your outlook on fuel demand considering the growth in electric cars?

In the short term, the impact on fuel demand may be relatively small, as electric cars still represent a small portion of the overall vehicle market. However, as electric cars become more affordable and more widely available, their market share is expected to increase, leading to a considerable decline in demand for gasoline and diesel.

This does not come as a surprise as we are witnessing a global shift from traditional fossil fuel-based energy sources such as coal, oil and gas toward cleaner and more sustainable energy sources. These changes are expected to create significant opportunities for businesses and investors, as well as promote greater energy security and help to reduce energy poverty in developing countries.

The energy transition is not without challenges. However, it presents significant opportunities for energy providers, such as ENOC, to diversify their portfolios, innovate and collaborate with other stakeholders to create a more sustainable energy future.

This interview was first published in the May 2023 edition of Commodity Insights Magazine. Click here to download the magazine.