The mega project has been awarded by Adnoc Refining and on completion, is expected to have a capacity of 600,000 barrels of crude oil per day. The project is an integral part of Adnoc’s 45 billion dollar expansionary downstream strategy.
Abu Dhabi/UAE – Adnoc Refining recently took a step closer to building the world’s largest integrated refining and petrochemicals complex, in Ruwais, when it awarded a Pre-Front End Engineering and Designing contract to the Wood Group. The contract awarded is a key milestone as Adnoc accelerates delivery of its 45 billion dollar expansionary downstream strategy. The project is expected to make Adnoc a leading global downstream player and enable it to increase the range and volume of high-value downstream products.
On completion, the state-of-the-art refinery will have a capacity of 600,000 barrels of crude oil per day. In keeping with modern design, the new refinery will be designed to have full conversion capability and allow integration with petrochemicals industries in Ruwais which is already the fourth largest single site refinery in the world.
The announcement follows last month’s signing of two strategic equity partnerships between Adnoc and Eni and OMV, covering both Adnoc Refining and a new trading joint venture, which will be jointly established by the three partners. Eni and OMV will acquire 20 % and 15 % shares in Adnoc Refining respectively, with Adnoc owning the remaining 65 %. Eni and OMV will also own 20 % and 15 % of the shares respectively of the trading joint venture. According to Adnoc, the transactions reflect the scale, quality and growth potential of Adnoc Refining’s assets, coupled with an advantageous location to supply markets in Africa, Asia and Europe.
In May 2018, Adnoc announced plans to invest, alongside partners, in creating the world’s largest and most advanced integrated refining and petrochemicals complex at Ruwais. A cornerstone of the plan is expansion of refining capacity by more than 65 % by 2025, 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 Adnoc Refining’s operations by adding to the range of crudes that can be processed.
The 45 billion dollar investment programme will also see the entire Ruwais complex upgraded 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 the company’s production capacity from 4.5 mtpa in 2016 to 14.4 mtpa by 2025.
In addition to investing in its refining and petrochemicals operations, the firm will develop an integrated downstream ecosystem in Ruwais, including new derivatives and conversion parks, to stimulate In-Country Value creation, employment opportunities, private sector and GDP growth. It also intends to undertake highly targeted overseas investments to secure greater market access for its downstream products.