DELHI (Reuters) - Abu Dhabi National Oil Company (ADNOC) wants to partner with Italy’s Eni and Austria’s OMV to expand its refining capacity to 1.5 million barrels per day, a company executive said on Tuesday.
ADNOC has a total refining capacity of 922,000 barrels per day (bpd) including a 85,000 bpd refinery near the Abu Dhabi city.
The state energy company plans to double its refining capacity and triple petrochemicals output potential by 2025, as it focuses more on downstream expansion to capture new growth markets.
ENI and OMV in January agreed to pay a combined $5.8 billion to take a stake in ADNOC’s refining business and establish a new trading operation owned by the three partners. The partnership with ENI and OMV is limited to the current refinery business.
“We are partners with OMV and ENI, obviously our desire would be to expand together for the new refinery, at the same time we are so committed to this expansion that if we are not able to align with them then we may chose to progress on our own,” Rizwan Khalil Sheikh, senior vice president, Downstream Strategy and Business Development told Reuters.
He said as part of refining expansion ADNOC plans to ‘mothball’ its refinery near Abu Dhabi city.
“All of our refineries are at Ruwais, we do have one refinery which is in Abu Dhabi city itself. Because of its proximity to urban areas we are looking to mothball that. That’s why despite the expansion we will get 1.5 million bpd,” he said at the India Energy Forum organized by IHS Cera.
ADNOC will be expanding its existing Ruwais refinery and will be building a new 400,000-600,000 bpd refinery there and the first phase of expansion will be in by 2024, he added.
Sheikh said the Ruwais refinery is running at ‘good capacity’ and upgrading it will enhance flexibility of the refinery to process non-ADNOC crude as well.
The Ruwais refinery currently processes only murban oil.
Editing by David Evans and Alexander Smith