Takreer eyes new refinery in Fujairah

14 October 2005
Plans for a new export refinery are taking shape, with Abu Dhabi Oil Refining Company (Takreer) proposing the construction of a worldscale facility in Fujairah. The grassroots refinery will have nameplate capacity of 300,000 barrels a day (b/d) and will be designed to process high-grade gasoline, diesel and related products. The UAE follows in the footsteps of Saudi Arabia, Kuwait and Qatar, all of which are implementing major grassroots refinery schemes to meet rising global demand for refined products.

Takreer is expected to issue invitation to bid documents by late October for the contract to provide project management consultancy (PMC) services for the new refinery. About eight companies are due to be invited to bid for the contract, including Bechtel, Kellogg Brown & Root (KBR), Fluor Corporation, Foster Wheeler, Washington Group International, Mustang Engineeringand Shaw Group, all US-based, and Parsons E&C, part of Australia's WorleyParsons.

The successful PMC bidder will prepare a statement of requirements, which will include process streams and plant configurations.

The next stage in the project implementation will be the selection of process licensors, to be followed by the award of the front-end engineering and design (FEED) package.

The project will involve the installation of naphtha hydrotreaters and splitters, twin catalytic reformers, isomerisation units, distillate hydrotreaters, vacuum distillation units, hydrocrackers and fluid catalytic crackers (FCCs). The scheme will also entail the construction of utilities and offsites, and a new port with loading facilities. Total project costs are estimated at about $4,000 million.

Feedstock crude for the proposed refinery will be supplied from the Upper Zakum field in offshore Abu Dhabi through a dedicated pipeline. The refinery will take about three years to build.

Takreer operates the Umm al-Nar and Ruwais refineries in Abu Dhabi emirate, which have capacities of 85,000 b/d and 130,000 b/d respectively. Both refineries primarily serve the demands of the local market. Work is under way for the modernisation and upgrade of the existing facilities, with a tender due to be issued soon for the FEED package covering the sulphur-free gas-oil (SFGO)/ green diesel project at Ruwais (MEED 2:9:05).

Several grassroots refinery projects have been planned in Fujairah in recent years, as investors look to take advantage of the emirate's strategic location outside the Gulf. However, none has proceeded beyond the planning stage. Fujairah has one refinery, a 105,000-b/d facility owned by Fujairah Refinery Company(MEED 22:9:00).

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