ENOC Group signed an agreement with Rotary Engineering Fujairah FZE to construct 12 new storage tanks as part of its plans to expand the capacity of its Jebel Ali refinery by 50 per cent, the energy firm said on Monday.
Construction deal for the tanks comes after September’s EPC contract for the design and construction of new processing units and ancillary units.
The expansion project comprises three separate packages at an estimated value of US$1billion and the expected date for commercial production is the fourth quarter of 2019, ENOC said.
“The UAE's energy demand is growing at about 9 per cent a year while Dubai’s population alone is expected to reach 3.3 million by 2021 from the current 2.5 million and then peak to 5.2 million by 2030,” said Saif Humaid Al Falasi, Group CEO of ENOC. “This represents a 24 per cent growth by 2021 which in turn means that Dubai’s energy requirements will follow pace. As part of ENOC’s commitment towards the UAE and Dubai’s energy needs, we will continue to invest in key infrastructure projects to meet this constant growth.”
The 12 new tanks are designed to meet the latest and highest industry standards to help maintain high product quality throughout the refinery’s logistics chain. The tanks are designed to store Jet fuel, Naphtha along with Gasoline blend stocks.
While Health, Safety and Environment (EHS) plays a crucial role for ENOC, the tanks will be equipped with their own safety features, designed to have dedicated firefighting systems which are integrated into the existing systems. The tanks will also be integrated into the port’s logistics systems and connected to the marine export facilities on the terminal jetties to ensure faster transportation of stored petroleum products.
“Our $1 billion expansion project at the Jebel Ali refinery is a key part of the UAE’s downstream strategy to be self-sufficient in domestic fuels, as well as expanding the slate of products on offer for export,” Al Falasi said.
Production capacity of ENOC’s Jebel Ali refinery is currently 140,000 barrels per day, helping to meet the requirements of local, regional and international markets. With the expansion, the company hopes to increase capacity to 210,000 barrels per day.
“This will help us address the needs of the market and the wider industry, which has witnessed considerable changes in recent times,” he said.
The second package of the expansion will also see the construction of a 31,000 square foot warehouse.
ENOC’s refinery first commissioned in 1999, starting with two condensate distillation units with a name plate capacity of 60,000 barrels per day each, four MEROX units, and storage capacity of 1.28million cubic meters.