Refining & Petrochemicals Middle East
Oman’s NGC plans to exit UAE operations
Oman’s National Gas Company (NGC), the leading liquefied petroleum gas (LPG) marketer in the Sultanate, is exiting the UAE market on the non-availability of additional supplies coupled with the reduction in margins.
“Considering the non-availability of LPG supplies from Oman for exports and the oversupply of gas in the UAE market, causing the continuous reduction in margins, the company has decided to exit its operations in the UAE region,” NGC said in filing to the local bourse Muscat Stock Exchange.
NGC explains that the decision to exit the UAE market is in tune with its business expansion and continuity of policy and has been taken after closely monitoring the market positions year-over-year, where the rebound in the scenario is not expected in the short or medium term.
The Sultanate-based company said pursuant to its decision, the company has also decided to shut down its subsidiary NGC Energy and Dubai-based Arabian Oil LLC. The company has investest around AED 0.6 million so far in both companies.
According to a report by Muscat Daily newspaper, National Gas operates LPG filling plants and is engaged in the marketing and selling of LPG in the Sultanate.
National Gas Company’s UAE business has been consistently witnessing dropping realisations despite significant quantity ramp-ups in the wake of tough business conditions, the report said quoting its quarterly financial report.