Technip, a leader in project management services for the energy industry, said on Monday it has been awarded an engineering procurement and construction (EPC) contract by Emirates National Oil Company (Enoc) that plans to expand its Jebel Ali refinery by 50 percent at an investment of $1 billon.

Technip, which was contractor on the Jebel Ali refinery from 1997 to 1999, will be responsible for the design and construction of the processing unit. The group’s operating centre in Rome, Italy, will manage the project.

The Front End Engineering Design was carried out by KBR, while the licensor technology has been provided by UOP, Axens, and KT.

Unveiling the expansion plans, Enoc said it aims to expand the capacity of its refinery in Jebel Ali by 50 per cent at an estimated cost of more than $1 billion.

The expansion project at Enoc Processing Company (EPCL) comprises three separate packages. The expected date for commercial production is the fourth quarter (Q4) of 2019.

The main package of the project will add a new Condensate processing train to the existing facility, expanding its daily capacity to 210,000 barrels, up from its existing current 140,000 barrels per day. Additional processing units will also be added. These include a new LPG/naphta hydrotreater, an isomerisation unit, kerosene hydrotreater, and a diesel hydrotreater.

These units will ensure that the refinery’s fuel products, which include gasoline, jet fuel and diesel, are capable of meeting expanding domestic fuel demand, as well as for export purposes.

Saif Humaid Al Falasi, Group CEO of Enoc, said: “The UAE's energy demand is growing at about 9 per cent a year. Since our establishment, we have grown into a responsible, profitable and sustainable organisation that has continuously met these needs. An emerging aviation sector and the evolving logistics needs of numerous businesses invoke a strategy that demands foresight. The refinery expansion is part of this strategy to develop enabling infrastructure that fuels the nation’s growth.”

In response to the UAE’s drive towards clean energy, the expanded EPCL facility will manufacture products for the local market meeting stringent Euro 5 standards.

Marco Villa, president of Technip’s Region EMIA, covering Europe, Middle East, India, Africa and Latin America, said: “We are proud to reinforce the long lasting relationship between Technip and Enoc for the expansion of the Jebel Ali Refinery, which was successfully delivered by Technip in 1999 with outstanding safety, schedule and quality performances.”

“This award confirms Technip’s leading position in the refining sector and in the Middle-East downstream business, as well as its ability to provide its Clients with customised solutions combined with secure project delivery. We are firmly committed to repeat, and even more improve, our strong performance of the original Jebel Ali Refinery Project,” he added.

The subsequent two packages of the project will include the construction of storage tanks and a 31,000-sq-ft warehouse. Suitable Contractors are currently being short listed prior to the tendering process for both packages.

Enoc is constantly focusing on expanding capacities in order to support domestic energy demand in alignment with Dubai Plan 2021 and in preparation for Expo 2020. Along with the development of its refinery capabilities, the company will also extend its service station portfolio by 50 per cent by 2020.

The facility also includes an ISO 9001:2015/ ISO 17025:2005 certified laboratory, and is the only accredited organisation in the Middle East that is capable of carrying out critical tests for gasoline and jet fuel products.-TradeArabia News Service