ADNOC Gets Approval for Investment Plans

04.12.2017 -

Abu Dhabi’s Supreme Petroleum Council (SPC) has approved Abu Dhabi National Oil Company’s (ADNOC) plans to invest more than 400 billion dirhams ($109 billion) over the next five years.

The state-owned energy group said it now expects to expand its petrochemical output to rise to 14.4 million t/y by 2025, rather than the 11.4 million t/y it announced last year as part of its 2030 strategy. Current output is 4.5 million t/y.

ADNOC will spend a major part of the money on its downstream business, where its strategy is focused on two areas. The first is centered on leveraging and optimizing domestic production to ensure fuel self-sufficiency as well as diversifying and expanding its refining, gas processing and petrochemicals business. At the same time, ADNOC said it will pursue international investments in order to reshape the business into a global company.

“We will engage in strategic, long-term overseas investments across the downstream value chain. Acting alone, or in partnership with others, we will focus on investments that bring attractive returns, grow market access for our products and allow us to develop a truly international footprint,” said ADNOC’s CEO, Sultan Al Jaber.

Plans downstream include converting naphtha, which is currently exported, into gasoline and aromatics. The aromatics complex is reported to include production of 1.4 million t/y PX and 200,000 t/y of benzene. Completion is slated for 2022. The benzene will be used in a 150,000  t/y linear alkyl benzene (LAB) plant, which is being developed by ADNOC and Spanish group Cepsa. PX output will be exported.

The aromatics production will be integrated within ADNOC’s Ruwais refinery, as will Borouge 4, a mixed feedstock cracker and derivatives complex producing polyolefins and other products being built in partnership with Borealis and due on stream around 2023.