Abu Dhabi National Oil Company (Adnoc) has announced plans to create the largest integrated refining and chemical site in the world, in Ruwais, UAE, where it will triple production of petrochemicals to 14.4 million tonnes annually by 2025.

Speaking at CeraWeek, a leading gathering of the energy industry, Dr Sultan Ahmed Al Jaber, UAE Minister of State and Adnoc Group CEO, set out the company’s strategic ambitions to become a major global downstream player, with the operational flexibility to respond quickly to shifting and emerging market needs.

He revealed Adnoc's intention to move further downstream, as the company pivots to take full advantage of the rising demand for higher value refined and petrochemical products, particularly in the growth economies of China and Asia.

Organised by IHS Markit, CeraWeek takes place annually in Houston, Texas, US. It brings together 3,000 global industry leaders and policymakers, from more than 60 countries, across the entire energy value chain, to exchange knowledge and insights on energy markets, industry trends, technology and strategy.

At the centre of its new downstream strategy, Adnoc intends to create the world's largest integrated refining and chemical site in the world, in Ruwais, UAE, where it will triple petrochemicals' production to 14.4 million tonnes, annually, by 2025, it said.

Dr Al Jaber announced plans to host a Downstream Investment Forum, in Abu Dhabi, on May 13 and 14, where Adnoc will unveil significant co-investment opportunities to strengthen and grow its downstream portfolio.

Al Jaber said: “We will unveil significant co-investment opportunities for all partners, ready to work alongside us at a special event this coming May, as we transform our Downstream portfolio domestically and internationally.”

"I would like to extend an invitation, to those who are keen to join us on this journey, to attend the forum, where we will unveil our roadmap, signature projects and detailed investment plans. As we begin this next phase of our development, we welcome existing and prospective partners to join us in creating smarter growth for our long-term mutual benefit,” he added.

Dr Al Jaber explained Adnoc’s downstream strategy will build on the progress Adnoc had made in 2017, as it accelerated its transformation and sharpened its focus on its strategic pillars of people, performance, profitability and efficiency to both unlock and create maximum value from its resources and assets.

In addition to aligning its group of companies under a single, unifying brand, he said Adnoc opened up opportunities across its upstream and downstream businesses to new categories of partners and investors, including public and private financial institutions.

Adnoc also took steps to enhance and optimise its capital structure by leveraging, for the first time, the global capital markets, including issuing a $3 billion bond against one of its large crude oil pipelines - the biggest non-sovereign bond sale in the Middle East - and successfully listing Adnoc Distribution on the Abu Dhabi Stock Exchange (ADX), in what was the largest IPO in Abu Dhabi in a decade.

“The steps we have taken so far have laid a solid foundation for powering the next phase of our growth,” Dr Al Jaber.

“And the biggest opportunity for that growth is downstream, particularly in petrochemicals, where demand is expected to climb 150 percent by 2040, driven by the growth economies of Asia,” he said.

While developing downstream has become a key strategic priority for delivering on the goals of Adnoc’s 2030 smart growth strategy, Dr Al Jaber said the company is also building on its strong legacy as a leading, global upstream player.

He cited the reconfiguration of the former ADMA offshore concession into multiple concession areas as an example of how an expanded approach to partnerships has allowed Adnoc to attract additional upstream partners who bring strategic value add to the table - in terms of market access, capital, technology and expertise.

In support of Adnoc’s upstream expansion strategy, Dr Al Jaber noted that a series of new blocks are to be made available for commercially competitive bidding, in an unprecedented opportunity, for both existing and new partners with best-in-class exploration technology, to unlock untapped resources in one of the world's largest hydrocarbon super-basins. – TradeArabia News Service