High Octane Activity in the UAE Oil Sector
Posted on 28th May 2018 in Articles
In May 2018, oil price hit $80 for the first time since 2014, meanwhile the UAE’s oil sector witnessed a flurry of project news. The Abu Dhabi National Oil Company (ADNOC) made the following series of announcements which will take the UAE’s petrochemical industry to great heights in addition to creating thousands of jobs and help the country’s economy:
$45b expansion of Ruwais complex launched
ADNOC announced that it is creating the single largest integrated refinery and petrochemicals complex in the world with an investment of $45 Bn. over the next five years.
As per the new plans unveiled, the refining capacity of Ruwais complex will be expanded by more than 65%, or 600,000 barrels/day by 2025. A third, new refinery at the complex will be creating a total capacity of 1.5 Mn. barrels per day.
The plan also includes building one of the world’s largest mixed feed crackers, tripling production capacity from 4.5 Mn. tonnes per annum (mtpa) in 2016 to 14.4mtpa by 2025. It will be capable of producing 1.8 Mn. t/y of ethylene. A new petrochemical derivatives and conversion park will also be created to boost manufacturing capabilities in construction chemicals, oil and gas chemicals, detergents, packaging materials and coasting, among others.
ADNOC and Ravago sign for Polyolefins Facility
ADNOC announced that it has signed a Memorandum of Understanding (MOU) with Belgium’s Ravago Group by which it would see Ravago build and operate state-of-the-art polyolefins compounding facility in Ruwais Industrial Complex.
Ravago operates 24 plants across four continents, producing plastics, rubbers and chemicals, serving the automotive, electronics, and building and construction industries through the company’s global distribution network.
Both companies also agreed to explore potential collaboration opportunities leveraging Ravago’s strengths across other areas within the petrochemical value-chain.
ADNOC to set up Linear Alkylbenzene facility with Cepsa
ADNOC announced it would be setting up a Linear Alkylbenzene (LAB) facility in Ruwais with Spanish energy company Cepsa. The facility is expected to have a production capacity of 150,000 tonnes per year of LAB upon completion and will be fully integrated within the ADNOC Refining complex in Ruwais, taking feedstocks of kerosene and benzene and profiting from the utilities and services of the Ruwais complex.
ADNOC and Morocco’s OCP plan fertiliser JV
ADNOC and the OCP Group of Morocco (OCP) are planning to explore the phased creation of a new global fertiliser joint venture to boost their presence globally and extend their partnership further. The two companies already have a partnership signed through the existing long-term sulphur offtake agreement that was announced in December 2017. Two fertiliser production hubs are being planned one in the UAE and another one in Morocco.
The first phase of this programme was completed this year and has brought the group’s existing fertiliser capacity to 12 Mn. tons, and rock export capacity to over 18 Mn. tons.
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