Dubai: The United Arab Emirates will import oil cargo from the United States, the Abu Dhabi National Oil Co (Adnoc) confirmed to Gulf News on Wednesday. The UAE has been seeking substitutes to replace Qatari condensate supplies cut off by the current diplomatic row, according to a Reuters report.
The UAE halted condensate imports from Qatar after it, along with Saudi Arabia, Egypt and Bahrain, severed diplomatic and transport ties with Qatar after accusing it of supporting terrorism.
Adnoc bought a US Eagle Ford condensate cargo in a tender for September arrival, Reuters reported, saying the cargo will arrive in a supertanker that can carry up to 2 million barrels of oil.
Adnoc faced limited options in sourcing for condensate substitutes as strong demand for the ultra-light oil in South Korea and Indonesia tightened supplies in Asia, trade sources said.
This forced the state oil company to look for supplies from other regions, including Eagle Ford condensate from the United States.
Adnoc used to receive 1 million to 1.5 million barrels of Qatari condensate every month under a term agreement with Qatar Petroleum, trade sources said earlier.
Condensate is a by-product of natural gas production and the oil is processed at refining units to produce mainly naphtha, a petrochemical raw material.
Adnoc earlier bought Khuff condensate from Saudi Arabia to replace Qatari supplies, the trade sources said, but the production volume of this oil is small and it is usually consumed locally.
— with inputs from Sarah Diaa
