ADNOC said it will make significant investments in new projects to further increase its refining capability and expand its petrochemicals business over the next five years - as part of its recently announced ‘2030 Strategy’.
The new projects will focus on gasoline and aromatics production and additional polyolefin capacity, as the company targets growing domestic and international demand for refined and petrochemical products - particularly in Asia, where the petrochemical market is set to double by 2030.
Details of ADNOC’s downstream expansion plans were announced at ADIPEC. The company also said that its strategy aims to ‘stretch the margin of each barrel of oil processed’, as it seeks to deliver a more valuable and profitable downstream business.
Abdulaziz Abdulla Alhajri, ADNOC’s Refining & Petrochemicals Director, said: “We are the proud owners of world scale modern assets, located centrally to serve growing markets. We are creating synergies by integrating our refining and petrochemicals businesses across the value chain. This will meet the needs of the evolving and expanding market for refined and petrochemical products, drive efficiencies and increase profitability.
“ADNOC’s ultimate goal is unlocking the full potential of our assets. So, we are pursuing profitable and integrated growth in refining and petrochemicals. We are also diversifying our product portfolio to make us more resilient to economic cycles and crude oil price fluctuations.”
Alhajri was speaking after participating in a panel discussion on ‘The Era of Collaboration and How Synergies Power the Energy Landscape’, held at The Middle East Petroleum Club, during ADIPEC.
The panel session provided insights into synergies across upstream, midstream and downstream and their role in today’s low price oil market.
Under ADNOC’s recently announced five-year plan and 2030 strategy, gasoline production will increase to 10.2 mtpa by 2022 to maintain local self-sufficiency. Petrochemical production will grow from 4.5 mtpa in 2016 to 11.4 mtpa by 2025. The new expansion projects will add polyolefin capacity and new petrochemical products such as aromatics coming from a world scale mixed feed liquid cracker.