The nations in the Middle East have, over the decades, been the cornerstone of the international oil and gas markets, serving astonishing amounts of energy resources for the international market. The two biggest competitors in the region are the Kingdom of Saudi Arabia’s Aramco and the United Arab Emirates’ ADNOC, each with their own projects and substantial assets. ADNOC recently revealed its plans to scale up production at the Ruwais refinery, targeting a doubling of refining capacity as well as tripling petrochemicals output in the coming years.
Abu Dhabi’s state-owned Adnoc has installed new processing facilities at Ruwais
The Ruwais refinery has become the jewel of ADNOC’s expansion plans, with the state-owned energy major installing new processing facilities at the site, marking a milestone in advancing the refinery’s capacity. The 817,000 b/d Ruwais refining complex has been on an upward trajectory as ADNOC aims to keep up with the pace of Saudi Aramco.
ADNOC noted the installation of 24 atmospheric residue desulfurizer reactors, as well as two new fractionators, is nearly complete, with the vast majority of the physical infrastructure in place. Now, the Ruwais refinery has a capacity to produce up to 420,000 b/d of Adnoc’s heavy, sulphur-rich offshore Upper Zakum grade, which is significantly cheaper than the company’s light, sour Murban crude.
Ruwais has become the foundation for the company’s expansion plans over the next few years
The refinery has become the centerpiece of ADNOC’s astonishing multi-billion-dollar expansion planned over the next five years, totaling an expected investment of $45 billion. The plan, according to ADNOC, is to turn the small desert town into one of the most advanced refinery and petrochemical complexes anywhere in the world.
ADNOC plans to grow its assets and capture new energy markets’ interest
The firm’s CEO and other prominent leaders have noted that the expansion plan covers a wide range of new and pioneering projects across the world, with a specific focus being placed on the Asian market as it sees its petrochemical demand increasing.
The ambitious plan was presented to the market during an industry conference in Abu Dhabi, with several of the top energy companies on the planet in attendance, including BP, Total, and Eni. All three of those companies have recently signed long-term crude production deals with the UAE, setting the stage for the nation to once again become the home of the conventional energy sector.
ADNOC’s plan is to add a third refinery to the Ruwais complex, and once complete, the total refining capacity will sit at approximately 1.5 million b/d. As other similarly large energy companies outline their own expansion plans, ADNOC is preparing for a multi-billion-dollar expansion in its home nation.
“We are extending an invitation to existing and new partners to join with us in building a world-leading refining and petrochemicals complex and manufacturing ecosystem here in Ruwais. Everything we are doing here is centred around ensuring that we are operating in the most efficient manner.” – ADNOC Chief Executive Sultan al-Jaber
The petrochemical expansion ambitions of ADNOC are exemplary of market trends
The downstream market is in a constant state of evolution. With ADNOC’s ambitious plans to turn Ruwais into one of the most advanced and significant petrochemical production hubs in the world, the petrochemical sector has been growing at an astonishing rate in recent months. Along with the Ruwais refinery, other exceedingly large energy companies have outlined their plans to boost biofuel production. The only constant in this world is change; nothing stays the same forever, and the astonishing plans that the Middle East has to increase energy output over the coming years are indicative of current market trends.
