Enoc looks to double fuel stations by 2021 as it launches on-demand service

Enoc Link, which has a fleet of 30 vehicles, will initially service commercial clients located in areas not serviced by conventional fuel stations

DUBAI,  UNITED ARAB EMIRATES , OCTOBER 8  – 2019 :- Saeed Amir , Chief Business Officer, ENOC Link speaking about the  ENOC Link trucks at the ENOC house in Dubai. ( Pawan Singh / The National ) For Business. Story by Jennifer
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Emirates National Oil Company plans to double the number of its service stations by 2021 and looks to add new revenue streams from the launch of on-demand fuel retail.

The UAE consumes 12 billion litres of fuel per year serviced by 566 stations. Enoc is
the largest fuel retailer in Dubai

"Today we have 133 stations, our network by 2021 will double in number, it will be 100 per cent expansion," Zaid Alqufaidi, managing director of retail at Enoc told The National.

“According to a study we have done, our stations throughput is actually double the world standard. We’re pumping 60,000 litres a day [per station] when the world standard is 30,000 litres so obviously there is a demand,” he added.

The company said in May it was investing Dh2.2 billion to expand its network in the UAE and Saudi Arabia, particularly to meet increasing demand for the Expo 2020 to be hosted by Dubai.

In Saudi Arabia, Enoc, which expects to have 17 service stations online by the end of the year, will look to double this figure by 2021, Mr Alqufaidi said.

The new fuel stations will be a mix of refurbished outlets as well as greenfield ones, he added.

On Tuesday, Enoc launched an on-demand fuel service called Enoc Link, which will deliver fuel to client's doorstep – initially to commercial customers who may find it challenging to access regular service stations..

“We are servicing customers we were not able to reach in the past – construction companies that have generators in the field, forklifts, cranes … they can’t be mobilised to the gas station and sending pickups with drums is a hassle for them and for us,” said Mr Alqufaidi.

The new service will add “efficiency”, he said and would help the company to acquire more customers as well as retain existing ones.

Enoc Link has a fleet of 30 vehicles, which have already begun deliveries to commercial customers located in free zones such as Jebel Ali, as well as car owners based in remote locations.

The service will be a competitor to another fuel delivery company Cafu founded last year. Enoc and others are working with the government to regulate the market and help set standards on training and safety.

Mr Alqufaidi said the company is open to possible acquisitions as it looks to grow in the retail sector.

Enoc Link currently does not charge a service fee for commercial clients, but this could change in the near future, he said. “Once the customers see we have really got efficiencies and cost savings for them, they won’t mind at a certain point paying for these services,” he said.

The Link service is part of Enoc’s Next accelerator programme, which last month launched an online car insurance company, Beema, in partnership with Axa. The service offers cashback of up to 25 per cent to UAE customers who limit the number of kilometres they drive.