Abu Dhabi's Inaugural Petroleum Trading Permit Marks A New Era In Energy Regulation

The Abu Dhabi Petroleum Products Trading Regulatory Committee, led by the Abu Dhabi Department of Energy (DoE), has granted its first permit for petroleum product trading in Abu Dhabi. This milestone aligns with Law No.5 of 2023, Federal Law No.14 of 2017, and related regulations. It signifies Abu Dhabi’s dedication to regulating the sector according to best practices, establishing a comprehensive legal framework for petroleum product trading.

Dr. Saif Saeed Al Qubaisi, Acting Director-General of Regulatory Affairs at the DoE, remarked on the significance of this permit as it marks the first since activating the petroleum products sector in Abu Dhabi. He stated, "This permit is particularly significant as it is the first trading permit since the activation of the petroleum products sector in Abu Dhabi. Its issuance underscores the DoE’s steadfast commitment to advancing a sustainable and efficient energy sector in the Emirate."

Engineer Ahmed Alsheebani, Acting Executive Director of the Petroleum Products Sector, emphasised that this new permit is part of ongoing efforts to improve safety and environmental standards within the petroleum sector. The aim is to boost operational efficiency while ensuring public safety and environmental sustainability. Alsheebani noted that advanced technologies are used to monitor petroleum transportation operations.

The DoE collaborates with specialised entities to implement these technologies and establish training programs for personnel. These initiatives ensure adherence to best practices and standards, reducing risks while providing technical support and resources for continuous improvement in the sector.

Alsheebani explained that issuing petroleum trading permits will significantly contribute to fostering a sustainable local economy by improving operational efficiency and productivity. The first permit under this new system was issued to Al Nasr Contracting Co. LLC. The DoE continues reviewing and issuing permits for various petroleum activities, supporting both the sector and economic growth.

The Committee responsible for overseeing these permits includes representatives from 20 federal and local entities, demonstrating strong collaboration among stakeholders to enhance safety and sustainability in the sector. Specialised task forces assist in executing functions and achieving objectives set by the committee.

Regulatory Oversight

The Committee reviews trading permit applications to ensure compliance with established requirements, recommends actions to the DoE, and monitors adherence to approved security, safety, and environmental standards across manufacturing sites, storage facilities, transportation activities, and trading operations.

Additionally, it provides guidance on permissible petroleum products for trading in Abu Dhabi and advises on including or suspending trading activities based on evolving needs within the Emirate.

The DoE remains committed to raising awareness about safety requirements through outreach programs, workshops, and field visits aimed at private sector partners and community members. This approach ensures all parties understand technical standards essential for maintaining a safe environment.

With inputs from WAM