Abu Dhabi: The Abu Dhabi Oil Refining Company (Takreer), plans to build a new refinery with a capacity of 417,000 barrels per day (bpd) at Ruwais, 240 km west of Abu Dhabi, a senior company executive said on Monday.
"The project is in the front end engineering and design (FEED) phase. This phase will be completed in a year and then the construction of the unit will begin, subject to necessary approvals, with its completion planned for 2013," Takreer general manager Jasem Ali Al Sayegh told delegates at the ongoing Middle East Refining Conference here.
He declined to comment on the estimated cost of the project.
"We will have an estimated cost one year from now," said Al Sayegh, but admitted that Takreer is feeling the heat of project escalation costs, which is a global phenomenon.
Al Sayegh said the new refinery will complement Takreer's present 400,000 bpd plant at Ruwais.
The Ruwais refinery currently processes 120,000 bpd of crude oil and 280,000 bpd of condensate.
In addition, Takreer operates the 85,000 bpd Abu Dhabi refinery located on the outskirts of Abu Dhabi.
Al Sayegh said Takreer's future plans are driven by the demand growth for petroleum in the local and international markets.
The refiner's green diesel project, which aims to reduce sulphur content in gasoil as mandated by the government, is planned for completion by the end of 2011.
In addition, Takreer is building an inter-refinery pipeline, which will connect both refineries with its Musaffah product dispatch terminal in the second quarter of 2008.
"This project, upon completion, will eliminate shipment of products between refineries," said Al Sayegh.
Another senior Takreer executive said nearly 30 per cent of the refiner's output constitutes gasoline and diesel.
"As of now, we don't import any oil products. We meet all our domestic fuel requirements and export too. We are exporting diesel, jet fuel and naphtha, mainly to Japan and the Far East," said the Takreer executive.
He said the Ruwais refinery, which at present is undergoing partial maintenance, will resume normal operations within the next 25 days.
Takreer was established in June 1999 to take over the responsibility of refining operations of the Abu Dhabi National Oil Company (Adnoc).