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Takreer moves ahead with Ruwais refinery expansion

Eric Watkins
Oil Diplomacy Editor

LOS ANGELES, Oct. 10 -- Abu Dhabi Oil Refining Co. (Takreer), an arm of state-owned Abu Dhabi National Oil Co. (ADNOC), has selected Honeywell unit UOP LLC to supply technology and engineering services for an expansion at the Ruwais refinery in the UAE.

The refinery will produce propylene, unleaded gasoline, naphtha, LPG, aviation turbine fuel, kerosine, gas oil, bunker fuel, and other products. Basic engineering design is currently in progress, and the refinery is expected to be complete in 2014.

Honeywell said the new facility will utilize "a wide range of UOP technologies for the production of clean, low-sulfur distillate and gasoline."

In July Takreer selected Shaw Group's Energy & Chemicals Group to supply engineering services and licensing for its proprietary residue fluid catalytic cracking technology.

In addition to its RFCC technology, Shaw also will provide engineering services to integrate and coordinate 11 process units from other licensors at the site.

In February Takreer announced plans to more than double the capacity of the Ruwais facility to 817,000 b/d.

At the time Takreer general manger Jasem Ali al-Sayegh said the engineering and design study for the expansion should be completed by yearend 2008 or early 2009.

Refined products consumption in the UAE is set to rise about 4.5% this year, according to forecasts of analyst BMI, which also said, "Takreer sees the Ruwais expansion as one of its most important projects."

Ruwais produces light products mainly for export to Japan and elsewhere in Asia. Fuel oil is sold as bunkers by the ADNOC and also used for domestic electric power generation.

Once expanded, Ruwais will be integrated with a petrochemicals complex and an oil lubricants plant, due online in 2012 and currently under construction by Takreer along with joint venture partners Neste Oil and OMV.

Neste, Takreer, and OMV announced plans last December to form a joint venture company and build a plant to produce sulfur-free, very high viscosity index (VHVI) group III base oil at Ruwais.

The three firms signed the heads of terms agreement in Abu Dhabi, covering the basic principles for the design, construction and operation of the facility, as well as the commercial terms of the project.

The planned facility will be capable of producing 500,000 tonnes/year of base oils used for blending top-tier lubricants. Feedstock for the base oil facility will be provided from Takreer's hydrocracker unit.

The JV will be 60% owned by Takreer and 20% each by Neste and OMV.

Contact Eric Watkins at hippalus@yahoo.com.


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