The Gaza Post|The News of Palestine-Abu Dhabi
Abu Dhabi National Oil Company (Adnoc) has unveiled plans to invest Dh165 billion ($45 billion) alongside partners, 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 (May 13) in Abu Dhabi, UAE.
The unprecedented investment program 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, the Emirati company said it will create the world’s largest and most advanced integrated refining and petrochemicals complex.
Through a combined program 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, it stated.
The strategy is expected to add more than 15,000 jobs by 2025 and contribute an additional 1 per cent to GDP per year, it added.
Minister of State and Adnoc Group CEO Dr Sultan Ahmed Al Jaber said: “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,” observed Dr Al Jaber.
“Importantly, the expansion plans for Ruwais will also support Abu Dhabi and the UAE’s economic development and diversification, create high-skilled jobs and enhance the country’s status as a globally attractive destination for energy investments,” he added.
According to him, the Abu Dhabi firm’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 program over the last two years. The business has improved 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,” he added.
Adnoc is now accelerating this transformation by unveiling its plans to become a leading global downstream player.
The new strategy will be supported by its 45-year plus legacy of a unique and open approach to partnerships, built on the UAE’s bedrock values, reliability and attractiveness, said the top official.
Adnoc will again look to create long term downstream partnerships, providing access to the most attractive parts of the energy value chain, to redefine he company’s future growth.
Dr Al Jaber said the unique competitive advantages and world-scale of Ruwais, combined with a $45 billion-investment plan and its ambitious smart growth strategy, has created a unique opportunity for Adnoc to redefine the global refining and petrochemicals landscape.
“As in the past, our full potential will be accelerated through value-adding partnerships, so we are extending an invitation to both existing and new partners to join with us in building a world-leading refining and petrochemicals complex and manufacturing ecosystem here in Ruwais,” he added.
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, said the company in a statement.
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), it added.