ADNOC to invest US$ 45 bn to create world’s largest, most advanced integrated refining and petrochem hub

UAE-headquaretered Abu Dhabi National Oil Company (ADNOC) has unveiled plans to invest US$45 billion or AED 165 billion, alongside partners, over the next five years, to become a leading global downstream player. 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. The plans were unveiled at the recent ADNOC Downstream Investment Forum held in Abu Dhabi. The unprecedented investment programme will underpin a new downstream strategy to significantly expand ADNOC’s refining and petrochemical operations at Ruwais in the UAE, and undertake highly targeted overseas investments to secure greater market access.

Building on the existing strengths and competitive advantages of the Ruwais Industrial Complex, ADNOC will create the world’s largest and most advanced integrated refining and petrochemicals complex. Along with this plan, ADNOC will increase its range and volume of high-value downstream products, secure better access to growth markets around the world and create a manufacturing ecosystem in Ruwais that will significantly stimulate In-Country Value creation, private sector growth and employment. The strategy is expected to add more than 15,000 jobs by 2025 and contribute an additional 1% to GDP per year.

ADNOC’s existing and sizeable downstream portfolio comprises eight companies processing 10.5 billion scf of gas/day, and with a refining capacity of 922,000 bpd of condensate and crude. They produce some 40 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.

Plans will expand the complex’s refining capacity by more than 65%, or 600,000 bpd by 2025, through the addition of a third, new refinery, creating a total capacity of 1.5 million bpd. 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. Likewise underway is 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.