Dubai awards estimated $1bn deal on refinery expansion

11 August 2016

Capacity of Emirates National Oil Company’s Jebel Ali condensate refinery to be increased

France’s Technip has been awarded a contract to expand the capacity of the Jebel Ali condensate refinery in Dubai, according to sources familiar with the project.

Project owner Emirates National Oil Company (Enoc) received commercial engineering, procurement and construction (EPC) bids from several companies on 5 May.

The contract is estimated to be valued at about $1bn.

The brownfield project will add 20,000 barrels a day (b/d) to the refinery’s existing capacity of 120,000 b/d to help meet rising domestic fuel demand.

Several companies submitted commercial EPC bids for the project including South Korea’s Samsung Engineering and Technip.

According to Middle East projects tracker MEED Projects, this is the largest oil and gas EPC contract Technip has been awarded in the GCC since the $1.7bn conversion unit package on the Satorp refinery in Saudi Arabia in 2009.

The refinery currently has two trains of condensate. Enoc plans to add two new processing units – jet and diesel hydrotreaters, and an isomerisation unit – that will lead to the production of Euro V grade products such as high-octane gasoline, low-sulphur jet fuel and ultra-low sulphur diesel.

The front-end engineering and design (feed) study has been completed by US-based KBR, which won the contract for the study in March 2014.

Established in 1999, the refinery processes condensate to produce refined products such as naphtha, jet fuel, reformate, diesel oil, fuel oil and liquefied petroleum gas (LPG) for local and export markets.

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