Takreer, GS Engineering and Construction Prepare to Start Ruwais Complex Expansion

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Researched by Industrial Info Resources East Asia (Kofu-shi, Japan)--On August 13, GS Engineering and Construction Corporation (SEO:006360) (Seoul) shipped the world's largest residue fluid catalytic cracker (RFCC) to Abu Dhabi National Oil Company (ADNOC) (Abu Dhabi) in the United Arab Emirates. The RFCC will be utilized by ADNOC's refining subsidiary, Abu Dhabi Oil Refining Company (Takreer), at the Ruwais refinery when it arrives in October. GS' RFCC is part of the expansion that is taking place at the Ruwais complex as Takreer boosts its refining capacity and completes the last phase of the Green Diesel Project.

The Ruwais refinery began operations in 1982 with a capacity of 120,000 barrels per day (BBL/d), but Takreer has been working to expand the refinery since the early 2000s. Takreer is now preparing to build a second $9.6 billion refinery within the Ruwais complex. The RFCC is scheduled to undergo incorporation starting in November, when the lube base oil plant expansion, planned in association with Hyundai Engineering and Construction Company (SEO:000720) (Seoul), is expected to start as well. When completed, the Ruwais complex will have a capacity of 537,000 BBL/d, which will boost the company's total capacity to approximately 950,000 BBL/d.

Several new facilities, including offsite utilities and a hydrocracker unit, are currently under construction as part of the Green Diesel Project. This initiative is part of Takreer's Abu Dhabi program to produce low-sufhur gas oil in an effort to meet international standards. The refiner expects completion on this part of the Ruwais expansion by the end of the year, after which the refinery will begin producing diesel that contains 10 parts per million sulfur. This target was first introduced in end-product countries such as the United States in 2007. The low-sulfur fuel combined with new emissions technology is expected to lower emissions from diesel engines.

GS is involved in a number of other projects throughout the Middle East, including ADNOC's $2.1 billion natural gas liquid recovery train at Ruwais, as well as Saudi Arabian Oil Company's (Al Khobar, Saudi Arabia) new natural gas processing plant. Hyundai is also involved in other ADNOC projects as well as Braqa nuclear power station, the United Arab Emirates' first nuclear energy venture.

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