Page 10 - DMEA Week 42 2021

DMEA REFINING DMEA

ADNOC scraps

more refining plans

MIDDLE EAST STATE-OWNED Abu Dhabi National Oil Co. project to improve crude flexibility at Ruwais
(ADNOC) is reported to have scrapped plans which will raise the refineries’ capacity for pro-
for a project to overhaul and expand its Ruwais cessing heavy crude streams, enabling ADNOC
West refinery following last week’s cancellation to increase exports of lighter grades.
of a new facility at the site. A week earlier, ADNOC said that it would
Speaking to S&P Global Platts, sources close no longer proceed with a new 400,000 bpd
to proceedings said that the planned capac- refinery at Ruwais, citing a lack of commercial
ity gain had been compensated for through attractiveness.
improved efficiencies at existing facilities in the Ambitious plans for the facility had been in
major downstream hub. the works for several years, though even a pared
“The planned expansion would have deliv- back version has now been shelved as ADNOC
ered an extra 200,000 bpd. However, over the turns its attention elsewhere downstream.
last year, through efficiencies and other work, The cancelled Ruwais unit had been included
[ADNOC has] been able to deliver it in another in plans unveiled by the company in May 2018
way using current refining units … So it’s more which covered the construction of a 600,000 bpd
or less compensated for,” one source said. facility alongside the existing 837,000 bpd hub.
He added that ADNOC has “debottlenecked This was altered a year later, with ADNOC
and delivered 200,000 bpd of the extra capacity instead electing to construct a new 400,000 bpd
that would have been planned, this is not extra refinery while overhauling and expanding the
production but extra capacity.” ADNOC has not existing refining complex by another 200,000
yet made any official statement. bpd.
Prior to the efficiency gains, Ruwais West had The latter project, also now apparently can-
a current throughput capacity of 417,000 barrels celled, had been expected to be completed by
per day, with the neighbouring Ruwais East hav- 2024, but sources speaking to Platts said that
ing a capacity of 420,000 bpd. A third, 85,000 ADNOC had not yet awarded any engineer-
bpd facility is located in Abu Dhabi city. ing, procurement and construction (EPC)
The company is continuing work on a $3.5bn contracts.™

P10 www. NEWSBASE .com Week 42 21•October•2021