A front-end engineering design (Feed) contract has been won by Spanish engineering company Técnicas Reunidas to study a petrochemical plant in Ruwais, UAE.
Abu Dhabi National Oil Company (Adnoc) and Spain's Cepsa, owned by UAE investment firm Mubadala, awarded the contract, of which the value has yet to be disclosed.
Técnicas' scope is to progress plans for a linear alkyl benzene (lab) factory, which is the first project to be pushed forward under Adnoc's $45bn (AED165bn) downstream investment strategy for Ruwais. It is also the third time this year that Técnicas has won an Adnoc contract.
Adnoc and Cepsa will co-operate the lab plant which, when it comes on stream, will produce up 225,000 tonnes (t) of normal paraffin and 150,000t of lab, a raw material used to make household and industrial detergents.
A timeline for completion of the lab factory has not been made public.
Refining and petrochemicals business unit manager at Adnoc, Abdulla Ateya Al Messabi, described the project has a “key component” of the state-owned oil company's downstream strategy to accelerate growth. He said it will add value to Adnoc's plan to build a large-scale manufacturing hub in Ruwais through construction of the Ruwais Derivatives Park.
“The park will act as a prime catalyst for the next stage of Adnoc's petrochemical transformation by inviting partners to invest and produce new products and solutions from the growing range of feedstocks that are available in Ruwais," he continued. "This will enable the creation of numerous new petrochemical activities and value chains.”
Al Messabi said the tendering process for the contract had been “rigorous and robust”.
Deputy chief executive officer of Spanish contractor Técnicas, Miguel Paradinas, said the win reinforced its relationship with Adnoc and Cepsa and was a testament to its strategy.
“This award supports our strategy to deliver value-added services in projects involving technologies in line with [our] know-how and experience.”
Cepsa's head of chemicals, José Manuel Martínez, hailed the awarding of the Feed contract as a “significant milestone” for Abu Dhabi's economic diversification.