ADNOC and Cepsa sign project development agreement

The agreement follows the signing of a memorandum of understanding (MoU) between ADNOC and Cepsa to evaluate the setting up of a LAB facility, last November. After the successful completion of a feasibility study, the project is now ready to move to the front-end engineering design (FEED) stage. The LAB manufacturing facility will be fully integrated within the ADNOC Refining complex, taking feedstocks of kerosene and benzene and benefitting from the suite of utilities and services of the Ruwais complex. The facility is expected to have a production capacity of 150 000 tpy of LAB upon completion.

The signing of the project development agreement comes as ADNOC outlined its new downstream strategy at its Downstream Investment Forum in Abu Dhabi on 13 May. At the heart of this strategy is a AED165 billion (US$45 billion) investment programme that will see the Ruwais Industrial Complex upgraded to significantly increase its flexibility and integrated capabilities to produce greater volumes of higher-value refined and petrochemical products.

ADNOC will also create a large scale, integrated manufacturing ecosystem in Ruwais through the creation of new petrochemicals Derivatives and Conversion Parks. The Ruwais Derivatives Park will be fully integrated with the larger Ruwais complex, acting as a prime catalyst for the next stage of petrochemical transformation, by inviting partners to invest and produce new products and solutions from the feedstocks that are available in Ruwais. The Ruwais Conversion Park will enable new businesses even further down the value chain, taking feedstock from ADNOC Refining, Borouge and the Derivatives Park, to manufacture higher value, converted end products, including packaging materials, coatings, high voltage insulation and automotive composites.

Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/15052018/adnoc-and-cepsa-sign-project-development-agreement/