Sunday 13, May 2018 by Jessica Combes

ADNOC announces AED 165 billion investment plan

 

The Abu Dhabi National Oil Company (ADNOC) has unveiled plans to invest AED 165 billion over the next five years, to become a leading global downstream player, enabling it to further stretch the value of every barrel it produces to the benefit of ADNOC, its partners and the UAE.

The plans were unveiled at the ADNOC Downstream Investment Forum, which took place today in Abu Dhabi, UAE. The 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. Through a combined programme of strategic partnerships and investment, 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, and is likely to add more than 15,000 jobs by 2025 and contribute an additional one per cent to the GDP per year.   

“Given the projected increase in demand for petrochemicals and higher value refined products, we are repositioning ADNOC to become a leading global downstream player. We will invest significantly in Ruwais and open up attractive partnership and co-investment opportunities along our extended value chain to create a powerful new downstream engine and springboard for growth that will benefit our country, our company and our partners,” said HE Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO.

ADNOC’s downstream investment plans are in line with its 2030 strategy of a more profitable upstream, more valuable downstream and sustainable, economic gas supply, underpinned by more proactive and adaptive marketing and trading. Building on its legacy of success, ADNOC has undertaken a significant group transformation programme over the last two years to improve operational efficiency, enhanced performance and realigned the management of its portfolio of assets and capital to create a new and expanded partnership and investment model.  

ADNOC’s existing and sizeable downstream portfolio comprises eight companies processing 10.5 billion standard cubic feet (scf) of gas per day, and with a refining capacity of 922,000 barrels per day (bpd) of condensate and crude. They produce some 40 million tons per year (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 are well advanced to expand the complex’s refining capacity by more than 65 per cent, or 600,000 bpd by 2025, through the addition of a third, new refinery, creating a total capacity of 1.5 million barrels per day (mbpd). The new refinery 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.  

The expansionary $45 billion 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 production capacity from 4.5 mtpa in 2016 to 14.4 mtpa by 2025.  

ADNOC will also develop a new, large-scale, manufacturing ecosystem in Ruwais through the creation of new petrochemical Derivatives and Conversion Parks. The Ruwais Derivatives Park will be built on a six square kilometer area adjacent to, and fully integrated with, the larger Ruwais complex and will act as a prime catalyst for the next stage of petrochemical transformation by inviting partners to invest and produce new products and solutions from the growing range of feedstocks that are available in Ruwais. This will enable the creation of numerous new petrochemical activities and value chains, in such fields as construction chemicals, oil and gas chemicals, surfactants and detergents, to name a few.

  

Features & Analyses