Key UAE Contract Goes to Spanish Firm
Abu Dhabi National Oil Co. (ADNOC) and project partner Cepsa have awarded Spain-based Tecnicas Reunidas SA (TR) the front end engineering design (FEED) contract for their world-scale Linear Alkyl Benzene (LAB) plant in Ruwais, UAE, ADNOC reported Tuesday.
According to ADNOC, the FEED contract represents a key milestone in developing the LAB plant – the first derivative unit to be advanced under its $45 billion Ruwais downstream investment program. ADNOC and Cepsa will jointly operate the LAB facility, which will produce 225,000 metric tons per annum (mtpa) of normal paraffins (NP) and 150,000 mtpa of LAB, ADNOC added.
“The LAB plant will be a key component of ADNOC’s plans to develop a new, large-scale manufacturing system in Ruwais through the creation of the Ruwais Derivatives Park,” Abdulla Ateya Al Messabi, manager of ADNOC’s Refining & Petrochemicals Business Unit, said in a written statement emailed to Rigzone.
Al Messabi noted that the park will “act as a prime catalyst for the next stage of ADNOC’s petrochemical transformation.” He explained that it will invite partners to invest and produce new products from the increasing availability of feedstocks in Ruwais, creating new petrochemical activities and value chains.
LAB is the most common raw material used used to manufacture biodegradable household and industrial detergents, ADNOC noted. In addition, the company stated that LAB is an ingredient in house cleaners, fabric softeners and soap bars. The LAB complex’s main feedstock will be straight-run kerosene and other streams that are byproducts from ADNOC’s Ruwais refining operations, ADNOC stated.
Citing research from the market research firm Colin A. Houston & Associates, Inc., ADNOC pointed out that the Indian Ocean Basin LAB market is expected to grow at a compound annual growth rate (CAGR) of 5 percent between 2016 and 2030. In addition, it noted that Asia-Pacific is the largest and highest-growing market for LAB.
“This award supports our strategy to deliver value-added services in projects involving technologies in line with TR know-how and experience,” stated TR Deputy CEO Miguel Paradinas. “It also reinforces our relationship with two priority TR clients, ADNOC and Cepsa, and consolidates our position in a strategic country where we have been working continuously for the past 10 years.”
“The award of the FEED contract is a significant milestone in Cepsa’s relationship with ADNOC, with whom we are working on a number of projects in the upstream, downstream and petrochemicals sectors,” noted Jose Manuel Martinez, head of chemicals with Cepsa, which is owned by the sovereign wealth fund Mubadala Investment Co.
“As an Abu Dhabi-owned company, we are keen to support ADNOC’s downstream expansion plans, in Ruwais, and the diversification of the UAE economy,” continued Martinez. “At the same time, Abu Dhabi’s 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.”
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.