UAE's ADNOC $45bn plan to upgrade, expand Ruwais site
- Author: Eleanor Harrison May 15, 2018,
May 15, 2018, 13:16
Abu Dhabi National Oil Company IN UAE is large crude producers, including Saudi Arabia and Kuwait in the Middle Eastern that are augmenting refining and petrochemical capacity to augment and diversify revenue. They had detailed discussions on the Indian downstream sector and explored the various opportunities for participation of UAE companies in the mega petroleum sector infrastructure projects in India.
While addressing a gathering at the Indian Embassy in Abu Dhabi, UAE, on Saturday, the Union minister said during the Modi government's regime, their endeavour has been to provide affordable, sustainable and clean cooking fuel, energy and electricity to all and that has also made India an attractive investment spot, especially in the energy sector.
The agreement was signed past year between ADNOC and ISPRL, an Indian government-owned company mandated to store crude oil for strategic needs, to locate 5.86 million barrels of ADNOC crude oil at the facility in the state of Karnataka.
ADNOC stated it needs to spice up its refining capability to 1.5 million barrels of crude a day, about half the crude it pumps, by 2025.
"Given the projected increase in demand for petrochemicals and higher value refined products, we are repositioning Adnoc to become a leading global downstream player".
ADNOC is evaluating some downstream expansion opportunities overseas with its strategic partners, he said, declining to give more details, but he said that India was a potential market. The facility is expected to have a production capacity of 150,000 tons per year of LAB upon completion.
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.
The company is also looking at different options for its ADNOC Refining subsidiary, including bringing on strategic partners but an initial public offering (IPO) for the unit is not on the "radar screen at this point in time", al-Jaber said.
Alkybenzene are derivatives of benzene, a component used to produce gasoline. The Ruwais Conversion Park will enable new businesses even further down the value chain, taking feedstock from ADNOC Refining, Borouge and the Derivatives Park, to manufacture higher value, converted end products, including packaging materials, coatings, high voltage insulation and automotive composites. The Conversion Park, occupying another 3.6 square kilometres, will also act as a catalyst for the creation of focused industry clusters, that cannot 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.
"The centrepiece when it comes to our downstream strategy is the Ruwais Industrial Complex..." The LAB manufacturing facility will be fully integrated within the ADNOC Refining complex, taking feedstocks of kerosene and benzene and benefitting from the suite of utilities and services of the Ruwais complex.