ADNOC commits to ‘Make it in the Emirates’ through downstream operations

By Ashika Rajan, Trainee Reporter
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Abu Dhabi National Oil Company (ADNOC) has revealed that it is committed to playing its part in the UAE government’s new ‘Make it in the Emirates’ approach, with $10.8 billion projects underway, including early-stage work on $4.9 billion projects at the new chemical hub planned for Emirates’ Ruwais.

Tenders for front-end engineering design work on the Ruwais projects, which are being developed through its Ta’ziz joint venture with Abu Dhabi holding company ADQ, have been issued. Other downstream and industrial projects are being pursued, as well as a new blue hydrogen and ammonia industry.

The clean fuel produced from natural gas is referred to as blue hydrogen. Ammonia is a simple and convenient way to store hydrogen.

ADNOC currently produces 300,000 tonnes of hydrogen per year for its downstream operations. The company intends to increase its gas manufacturing capacity to over 500,000 tonnes. Earlier this year, it announced a hydrogen alliance with ADQ and Abu Dhabi-based Mubadala Investment Company.

Mr. Khaled Salmeen, Executive Director of ADNOC’s downstream, industry, marketing & trading directorate remarked that “ADNOC’s downstream and industry operations are a critical engine of industrial growth in the UAE. Our operations provide competitive fuels and feedstocks to enable the nation’s industries and manufacturing supply chains.”

The UAE’s unified industrial brand identity, ‘Make it in the Emirates,’ was designed to encourage local and foreign investors to help expand the country’s industrial base. It’s part of UAE leadership’s Operation 300bn initiative, which aims to more than double the industrial sector’s contribution to the economy to $81.6 billion per year by 2031, up from $36.2 billion now.

Ta’ziz projects in the Ruwais derivatives park will focus on the growth of new chemicals and products. The chemicals hub, which is open to international and local investment, will produce disinfectants, plastics, building materials, and pharmaceuticals. According to ADNOC, it has received “significant interest from investors,” with anchor project partners to be announced in the coming months.

The company’s chemical production expansion through its Borouge joint venture with Austrian chemical company Borealis is also on track. ADNOC said that the fifth polypropylene unit under construction is nearly 90 percent complete. It will be able to produce enough polypropylene pipe to cover approximately 600,000 kilometers per year.

Related: ADNOC Distribution shareholders approve 7.5% dividend raise