Adnoc unveils Dh165B investment plan
abu dhabi — The Abu Dhabi National Oil Company (Adnoc) on Sunday unveiled plans to invest Dh165 billion ($45 billion) in downstream over the next 5 years and expand to significantly increase its refining and petrochemicals capacity.
It will also develop the Ruwais Industrial Complex into one of the world’s largest and most advanced integrated refining and petrochemicals complex with additional facilities like Ruwais Derivation Park and Ruwais Conversion park with added capacity.
Unveiling Abu Dhabi’s new downstream oil strategy at the Adnoc Downstream Investment Forum held in Abu Dhabi on Sunday, Dr Sultan bin Ahmad Sultan Al Jaber, Minister of State and CEO of Adnoc, said the unprecedented investment will create 15,000 new jobs by 2025 and contribute to an additional 1 per cent growth to the country’s GDP annually.
“The unique competitive advantages and world-scale of Ruwais, combined with a $45 billion-dollar investment plan and our ambitious smart growth strategy, create a unique opportunity for Adnoc to redefine the global refining and petrochemicals landscape,” Al Jaber said.
We are extending an invitation to both existing and new partners to join with us in building a world-leading refining and petrochemicals complex and manufacturing ecosystem here in Ruwais
Dr Sultan bin Ahmad Sultan Al Jaber, Minister of State and CEO of Adnoc
“As in the past, our full potential will be accelerated through valueadding partnerships, so we are extending an invitation to both existing and new partners to join with us in building a world-leading refining and petrochemicals complex and manufacturing ecosystem here in Ruwais,” he said.
“Given the projected increase in demand for petrochemicals and higher value refined products, we are repositioning Adnoc to become a leading global downstream player. We will invest significantly in Ruwais and open up attractive partnership and co-investment opportunities along our extended value chain to create a powerful new downstream engine and springboard for growth that will benefit our country, our company and our partners,” the minister added.
Al Jaber said the expansion plans for Ruwais will also support Abu Dhabi and the UAE’s economic development and diversification, create high-skilled jobs and enhance the country’s status as a globally attractive destination for energy investments.
Adnoc’s existing and sizeable downstream portfolio comprises eight companies processing 10.5 billion standard cubic feet (scf) of gas per day, and with a refining capacity of 922,000 barrels per day (bpd) of condensate and crude. They produce some 40 million tonnes per year (mtpa) of refined products, and a range of other products, including granulated urea, liquefied petroleum gas (LPG), naphtha, gasoline, jet fuel, gas oil and base oils, fuel oil, and other petrochemical feedstock.
The plan is to expand the complex’s refining capacity by more than 65 per cent, or 600,000bpd by 2025, through the addition of a third, new refinery, creating a total capacity of 1.5 million barrels per day (mbpd). The new refinery, coupled with other projects underway within the Ruwais complex, will significantly increase the capability, flexibility and output of Abu Dhabi’s refining operations by adding to the range of crudes that can be processed and that in turn enables the export of increased volumes of the UAE’s high-value Murban crude.
Ruwais upgrade
The Dh165 billion investment programme will see the entire Ruwais complex upgrade to dramatically increase its flexibility and integrated capabilities to produce greater volumes of higher-value petrochemicals and derivative products. It includes a plan to build one of the world’s largest mixed feed crackers, trebling production capacity from 4.5 mtpa in 2016 to 14.4 mtpa by 2025.
Adnoc will also develop a new, large-scale, manufacturing ecosystem in Ruwais through the creation of new petrochemical Derivatives and Conversion Parks. The Ruwais Derivatives Park will be built on a 6sqkm area adjacent to, and fully integrated with, the larger Ruwais complex. The park will act as a prime catalyst for the next stage of petrochemical transformation by inviting partners to invest and produce new products and solutions from the growing range of feedstocks that are available in Ruwais. This will enable the creation of numerous new petrochemical activities and value chains, in such fields as construction chemicals, oil and gas chemicals, surfactants and detergents, to name just a few.
Furthermore, the park will spur new business creation even further down the value chain, taking feedstock from both the Derivatives Park and other Ruwais assets to manufacture higher-value end products. The Conversion Park, occupying another 3.6sqkm, will also act as a catalyst for the creation of focused industry clusters, that can not only supply products and solutions using the derivatives and other facilities available, but will also leverage the proximity of such an interconnected ecosystem to drive expertise, innovation and entrepreneurship.
Both the Ruwais Derivatives Park and Ruwais Conversion Park are expected to act as a focal point for the global petrochemicals industry and will cement Ruwais’ role as a key node in the global refining and petrochemical supply chain. Across both parks, in addition to supplying feedstocks, Adnoc will make available developed land, infrastructure, utilities and shared services at attractive rates to partners.
Adnoc also announced it will undertake the significant expansion and development of Ruwais City to meet the increase in demand for housing and other facilities. Along with new homes, Adnoc is also constructing infrastructure and community enhancement projects for Ruwais City that include the expansion of the public transport system and numerous community and other facilities.
— anjana@khaleejtimes.com