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Dubai oil major announces $1bn expansion to add 70,000 bpd

Dubai’s Emirates National Oil Company (Enoc) announced the expansion of its refinery in Jebel Ali by 50 per cent to increase its daily capacity to 210,000 barrels.


The three-stage expansion is expected to cost more than $1 billion, the company said in a statement.


Commercial production at the extended Enoc Processing Company facility is expected to commence in the fourth quarter of 2019.


The oil firm said a new condensate processing train will be added to the existing facility, commissioned in 1991, in the first stage of the project to increase the capacity by 70,000 barrels per day (bpd).


Additional processing units will also be added as part of the expansion to meet growing domestic fuel demand as well as for export purposes. The new units will include ab LPG/Naphta hydrotreater, an isomerisation unit, a kerosene hydrotreater, and a diesel hydrotreator.


Rome-based oil services company Technip Italy won the engineering procurement and construction contract for the design and construction of the processing unit.


The second and third stages of the project will include the construction of storage tanks and a 31,000 square foot warehouse.


Enoc said it was in the process of finalising contractors for the remaining phases.


“The UAE’s energy demand is growing at about nine 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,” said Saif Humaid Al Falasi, Group CEO of ENOC.


The company also has plans to extend its service station portfolio by 50 per cent by 2020.