ABU DHABI - The Oil Refining Sector.

Abu Dhabi has a major oil refining sector which can process up to 515,000 b/d of crude oils and condensates, and the capacity is eventually to exceed 570,000 b/d. It will soon be producing green fuels, consisting of unleaded gasoline and very low sulphur gasoil. The emirate has two oil refining

complexes, one on the island of Umm Al Nar with a nameplate capacity of 85,000 b/d now operating 90,000 b/d and one at Ruwais with a capacity of 425,000 b/d to be expanded soon to 481,000 b/d. Both are operated by the Abu Dhabi Oil Refining Co. (Takreer), a unit of state-owned Abu Dhabi National Oil Co. (ADNOC).

Dubai's 120,000 b/d condensate splitter is to have a 70,000 b/d hydrotreater, a continuous catalytic reformer (CCR), associated works and an upgrade to existing facilities in a $350m projects just tendered. There are small refineries in Fujaira and Sharjah and in Dubai's Jebel Ali free zone.

Takreer has recently put in place a series of measures that have led to control of flaring to yield savings to the tune of Dh7.3m annually. The Ruwais refinery has four elevated flares, one each for hydroskimmer, hydrocracker, and condensate units of 211 and 411. The sources of flaring are mainly from fractioners overhead of the process units and non-condensable hydrogen.

The refinery has identified the major sources of flaring by introducing spider diagrams in the operating units, taking prompt action to minimise flaring creating awareness at the individual and team levels, which have combined to contribute to increase the profitability of the company, reduce pollution, protect the environment and reduce occupational hazards.

ADNOC for Distribution (ADNOC-FOD) buys the oil products from Takreer and retails them in Abu Dhabi and the northern emirates. Its trades include lubricants, blended in its facilities at Umm Al Nar, near Abu Dhabi City. ADNOC-FOD lubricants are also exported to regional markets. The volume of LPG produced in the emirate and mostly exported from the Gasco terminal at Ruwais is to reach 12m t/y by end-2007. Liquid and granulated sulphur is also exported from ADNOC facilities at Ruwais.

ADNOC-FOD announced on Oct. 12, 2004, that despite a big rise in world oil prices it was continuing to supply fuel at its prevailing rates. It said that, while the company was committed to providing fuels at existing prices and bear the losses to maintain the price, the federal Ministry of Petroleum and Mineral Resources (which in November was renamed Energy Ministry as the water and power sectors were merged into it) was studying options on how fuel distribution firms could cope with losses.

The company's long-standing CEO Jamal Al Dharif said: "ADNOC-FOD will continue to sell all kinds of gasoline to consumers at the current rates... and there is no intention to stop distributing gasoline at Adnoc gas stations in Abu Dhabi and other emirates. ADNOC-FOD faces the same situation as other companies are facing and is under pressure of losing more and more revenues, but we are committed to sell at prices determined by the Ministry... that are lower than the prices at which gasoline and other products are bought". The Energy Ministry in late 2004 was said to be considering giving federal subsidies to all distribution companies so that they can buy fuels at prices currently prevailing in the country.

Retail stations of ADNOC-FOD are running at full capacity in Abu Dhabi and other emirates. A new outlet started up in October, taking the number of retail stations in Abu Dhabi to 53. In the same monthADNOC-FOD launched a programme to have petrol stations in Al Ain and two new rest stops on the Al Ain-Abu Dhabi highway. Three of the petrol stations are being built and a redesigned refuelling station opened on Oct. 24 by Dharif is the fourth modernised outlet in Al Ain. Three already operate on the Al Ain-Abu Dhabi highway near Al Faya and Al Ramah and in Sanaiya. These are part of a plan to build luxury provision centres in cities and on highways that connect Abu Dhabi's major cities with other cities and towns. One new refuelling station is on Shaikh Zayed the First Street. Facilities include an active lube bay for oil change, car repair, tyre balance and minor repair bays and a shopping area.