The Abu Dhabi National Oil Company (ADNOC) will invest AED 165 billion ($45 billion) over the next five years as it works to create the world’s largest and most advanced refining and petrochemicals complex and become a leading player in the global downstream industry, the company announced on Sunday.
According to the company, the investment and a number of strategic partnerships will help the company increase its range and volume of downstream products, secure access to growth markets and create a new manufacturing ecosystem in Ruwais that will create over 15,000 jobs and contribute an additional 1 percent of GDP by 2025.
As part of the plan, the refining capacity of the Ruwais facility,which currently stands at 922,000 barrels per day (bpd), will be increased by more than 65,000 percent, or 600,000 bpd, by 2025 through an additional new refinery, creating a total capacity of 1.5 million barrels per day.
Currently, ADNOC’s downstream portfolio of eight companies processes about 10.5 billion standard cubic feet (scf) of gas per day, and produce 40 million tonnes per year (mpta) of refined products as well as granulated urea, liquefied petroleum gas (LPG), naphtha, gasoline, jet fuel, gas oil and base oils, fuel oil and other petrochemical feedstock.
“Given the projected increase in demand for petrochemicals and higher value refined products, we are repositioning ADNOC to become a leading global downstream player,” said ADNOC Group CEO and UAE Minister of State Dr. Sultan Ahmed Al Jaber.
“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,” he added.
In a statement, ADNOC noted that the investment programme will also include a plan to construct one of the world’s largest mixed feed crackers, trebling production to 14.4 mtpa by 2025, up from 4.5 tpa in 2016.
The plans also call for the creation of the Ruwais Derivatives Park to be built on a six square kilometer area adjacent to – and integrated with – the larger Ruwais complex. ADOC believes that the facility will help attract investment and enable the creation of new petrochemical activities and value chains, such as construction chemicals, surfactants and detergents.
Additionally, ADNOC has announced the new Ruwais Conversion Park, which will take feedstock from the Derivatives Park and other Ruwais assets to manufacture end products.
ADNOC believes that the park – which will occupy another 3.6 square kilometers – will serve as the catalyst for the creation of focused industry clusters.
To meet the needs of the new and expanded facilities, ADNOC will also undertake a “significant expansion” of Ruwais City by creating additional housing facilities, as well as infrastructure and community enhancement projects such as healthcare facilities, schools and recreational spaces.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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