Dubai: Abu Dhabi oil refining company Takreer said it has signed signed contracts worth more than Dh36.7 billion ($10 billion) this year to carry out three large expansion projects as part of its plan to develop the oil refining industry and meet future challenges.
"The grand expansion projects comply with Abu Dhabi National Oil Company's [Adnoc's] policy to develop the downstream industry in the country and meet future requirements for oil and gas," a spokesperson said.
The projects include engineering, procurement, construction and commissioning [EPCC] for five main packages of the Ruwais Refinery Expansion Project worth $9.6 billion with four Korean companies.
The agreements were signed with SK Engineering & Construction for the crude oil distillation and associated downstream units package, GS Engineering & Construction Corporation for the residue fluid catalytic cracking unit and associated refining units and marine facilities packages, Samsung Engineering for the offsite and utilities p-ackage and Daewoo Engineering and Construction for the tankage and associated interconnecting piping package.
The project will serve three main objectives continuously pursued by Adnoc as follows including, satisfying the growing demand of high quality petroleum products in the local market as well as increasing Adnoc's presence in the international market for finished products while meeting future stringent specifications, integration with the neighbouring petrochemical industry by exporting 1.1 million tonnes per year of propylene to the Borouge olefins complex in Ruwais.
This will result in saving investment cost and reduce operating cost to the benefit of both operating companies.
The expansion project will increase Takreer's crude oil refining capacity by 417,000 barrels per day and nearly double its production of transportation fuels; gasoline, jet and diesel after the completion of the project by the end of 2013.
The process configuration consists of 21 major process units with supporting offsite and utilities units.
Green move
Latest technology to reduce the carbon footprint has been incorporated, enabling Takreer to become an environmental pacesetter in the future.
The centrepiece of the project is the Residue Fluidised Catalytic Cracking Unit, at 127,000 barrels per day the largest of its kind under construction.
The company has also signed an agreement contract worth $463 million with Hyundai Engineering to provide "engineering, procurement, construction (EPC) works for the Group III Base Oil Production Facilities project at Ruwais refinery.
The project, which is designed to provide Takreer with greater diversity in refined products by adding new high value Group III lubricating oil, is scheduled to reach the commercial production stage by the end of 2013.
Group III Base Oils are high quality and environment friendly. They will be used for blending top-tier lubricants for car engines. These long-life oils significantly increase the drain intervals of car lubricants.
New storage facilities
Under the project, the refinery will produce 500,000 tonnes per year of Group III Base Oils as well as 100,000 tonnes per year of Group II Base Oils.
As part of the project, a revamp of the existing hydrocracker unit and integration with the existing refinery units and utilities will be carried out. New storage tanks will also be constructed.
Meanwhile, Takreer has also signed a $623 million agreement with GS Engineering and Construction Corporation to carry out the engineering, procurement, construction and commissioning (EPC) works for the Inter Refinery Pipelines (IRP-II) project.
With a total length of 955 km of pipeline ranging from 10 to 28 inches in diameter, the planned pipeline network connecting the refineries with various terminals in the emirate of Abu Dhabi will be capable of covering the increase in demand in refined petroleum products for the foreseeable future, the company said.
"The project is being executed in fulfillment of Adnoc vision to establish reliable and safe network of pipelines for hydrocarbon product movement between the refineries and storage terminals for commercial distribution," the spokesperson said.
