Abu Dhabi: Abu Dhabi announced on Sunday that it is creating the single largest integrated refinery and petrochemicals complex in the world with an investment of $45 billion over the next five years.
The new complex will create thousands of jobs and boost the local economy, said Dr Sultan Ahmad Al Jaber, Minister of State and chief executive officer of Adnoc.
- Dr Sultan Ahmad Al Jaber | Minister of State and chief executive officer of Adnoc
The investment programme will be part of a new downstream strategy to expand Adnoc’s refining and petrochemical operations at Ruwais and undertake highly targeted overseas investments to secure greater market access.
“We will build and expand on the foundation that we have already established in the Ruwais industrial complex,” Al Jaber said. “We will double our crude refining capacity, triple our petrochemical production and alongside our partners invest $45 billion to create the single largest integrated refining and petrochemicals destination in the world,” he said while speaking at the Downstream Investment Forum in Abu Dhabi.
He added that the upstream business will always remain a core part of Adnoc’s DNA but at the same time, but they are focusing on the downstream sector due to increase in demand for petrochemical products.
“When we look at where new growth is coming from, we find that the sharpest growth is in the downstream [sector], where demand for petrochemicals and polymers will more than double over the next 20 years.”
As per the new plans unveiled by Adnoc on Sunday, the refining capacity of Ruwais complex will be expanded by more than 65 per cent, or 600,000 barrels per day by 2025. A third, new refinery at the complex will creating a total capacity of 1.5 million barrels per day.
The expansion will significantly increase the capability of Abu Dhabi’s refining operations by adding to the range of crudes that can be processed for the export of the UAE’s high-value Murban crude.
The $45 billion investment programme will also see the entire Ruwais complex upgraded to 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 production capacity from 4.5 million tonnes per annum (mtpa) in 2016 to 14.4mtpa by 2025. It will be capable of producing 1.8 million tons 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.
“The impact of these investments will be tangible and long-lasting.” Al Jaber added.
“They will generate attractive returns for Adnoc and its partners, and also critically produce sustainable in country value here at home contributing at least 15,000 direct and indirect new jobs by 2025 and 1 per cent UAE GDP growth per year.”
As part of the overall Ruwais area development, Adnoc will undertake the development of Ruwais city to meet the increase in demand for housing and other facilities resulting from the significant enlargement of the Ruwais Industrial Complex.
New schools, colleges, hospitals and a university, among others will be built to cater to the needs of residents living in Ruwais.
Al Jaber also added that oil will continue to be in demand despite recent advancements as its usage varies from manufacturing light weight composite car parts to high voltage insulation to nano-plastics for micro-chips.
