After the completion of Ruwais plant expansion, the UAE is expected to achieve self sufficiency in gasoline by the end of 2014.
According to an official of the Abu Dhabi National Oil Company (ADNOC), “we’re trying to increase our capacity to meet domestic demand. We used to be balanced in gasoline, but due to rising demand that changed again.” He was speaking to the media at an energy conference organized by Conference Connection.
It is estimated that the demand of gasoline has climbed above five million tons due to heavy subsidies allowed by the OPEC member state. While the UAE produces around 2.7 million tons of gasoline, it has to rely on imports to meet the remaining market demand. Currently, bulk of the UAE’s crude oil and refined oil products are produced by ADNOC.
The Abu Dhabi Oil Refining Company (TAKREER) has undertaken the project of expanding Ruwais complex, the UAE’s biggest refinery with a capacity of 415,000 barrels per day (BPD). The refinery is located 240 kilometers west of capital. The company is spending USD 10 billion to set up a new plant, adjacent to the existing plant and within the Ruwais industrial complex. The expansion will double the refining capacity of Ruwais and any decision on further oil imports will be made after technical commissioning of the refinery in late 2014.
The company has also assumed charge of petrol stations in the northern emirates after oil shortages were faced by the region in 2011. The shortage was created after Dubai government-owned Emirates National Oil Company (ENOC) was pinched hard by heavy subsidy bills and suspended supplies to those emirates.
Government sources also point out that the UAE will increase its crude oil production capacity to 3.5 million barrels per day. The move is expected to provide support to crude oil prices in the global market and ensure that there is no supply shortage over the long-term.