Publish Date : 26-Dec-2018
The Abu Dhabi National Oil Company (ADNOC), and its project partner Cepsa, have announced the awarding of a key contract, as both companies move forward with plans to develop a world-scale Linear Alkyl Benzene (LAB) plant in the Ruwais Derivatives Park. The LAB project is the first of the derivative units to be advanced under ADNOCs US $45 billion (AED 165 billion) Ruwais downstream investment program.
The Front End Engineering Design (FEED) contract, a key milestone in the development of the LAB project, has been awarded to Tcnicas Reunidas, a Spanish based engineering company which has been active in the UAE since 2006.
The LAB project will be jointly operated by ADNOC and Cepsa. When it comes on stream, the plant will produce 225,000 metric tons per annum of Normal Paraffins (NP) and 150,000 of LAB.
ADNOC Refining & Petrochemicals Business Unit Manager Abdulla Ateya Al Messabi said: The LAB plant will be a key component of ADNOCs plans to develop a new, large-scale, manufacturing ecosystem in Ruwais through the creation of the Ruwais Derivatives Park. The park will act as a prime catalyst for the next stage of ADNOCs petrochemical transformation by inviting partners to invest and produce new products and solutions from the growing range of feedstocks that are available in Ruwais. This will enable the creation of numerous new petrochemical activities and value chains.
The awarding of this contract, after a rigorous and robust tendering process, is yet another strong signal that ADNOC is accelerating its 2030 growth strategy. It is also a prime example of ADNOCs determination to support the diversification of Abu Dhabi's industrial base, as we pivot downstream to meet growing demand for petrochemicals, both in the region and beyond into Asia.
LAB is the most common raw material in the manufacture of biodegradable household and industrial detergents. It is also used in house cleaners, and soap bars. The main feedstock for the LAB complex will be straight-run Kerosene and other streams that are by products from ADNOC Refinings operations in Ruwais.
Miguel Paradinas, Deputy CEO of Tcnicas Reunidas said: This award supports our strategy to deliver value added services in projects involving technologies in line with Tcnicas Reunidas know how and experience. It also reinforces our relationship with two priority our clients, ADNOC and Cepsa, and consolidates our position in a strategic country where we have been working continuously for the past ten years.
The Indian Ocean Basin LAB market is expected to grow at a CAGR of 5% between 2016 and 2030, according to market research, conducted by Colin A. Houston & Associates Inc., a leading global market research and advisory company. The Asia-Pacific region is the largest and highest growing market for LAB, with high demand from the industrial and household cleaning products sector. With a strong logistics base and diverse transportation links, Abu Dhabis strategic location allows easy access to serve these growth markets.
Jos Manuel Martnez, Cepsas Head of Chemicals said: The award of the FEED contract is a significant milestone in Cepsas relationship with ADNOC, with whom we are working on a number of projects in the upstream, downstream and petrochemical sectors. As an Abu Dhabi owned company, we are keen to support ADNOCs downstream expansion plans, in Ruwais, and the diversification of the UAE economy. At the same time, Abu Dhabis strategic location will enable us to strengthen our presence in the key markets for LAB products, in the Middle East, India and South-East Asia.
Alongside the Ruwais Derivatives Park, ADNOC also plans to develop the Ruwais Conversion Park that will spur new business creation even further down the petrochemical value chain and act as a catalyst for the creation of focused industry clusters, that can not only supply products and solutions, using the derivatives and other facilities available, but also leverage the proximity of Ruwaiss interconnected ecosystem to drive expertise, innovation and entrepreneurship.
Across both parks, in addition to supplying feedstocks, ADNOC will make available developed land, infrastructure, utilities and shared services at attractive rates to partners. It will become a destination of choice for domestic and international partners who wish to set up their businesses or manufacturing facilities in the UAE, one of the worlds most stable, attractive and business-friendly investment destinations.
The LAB FEED contract is the third ADNOC contract to Tcnicas Reunidas this year. In September, a consortium of Tcnicas Reunidas and UAE based Target Engineering Construction was awarded an EPC Contract for the second phase of ADNOC LNGs Integrated Gas Development Expansion Project. And, in November, it secured an US $1.4 billion (AED 5.1 billion) Engineering, Procurement and Construction (EPC) contract to upgrade and expand ADNOCs Bu Hasa field, that will increase the fields crude oil production capacity to 650,000 barrels per day (bpd).
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