Abu Dhabi National Oil Company (ADNOC) will be doubling the production rate of diesel and jet fuels upon the completion of an expansion project in Al-Ruwais refinery, according to an energy expert’s statement on Wednesday.
Officials in the petroleum sector said that such a decision will create a surplus in the Middle East next year, especially after the completion of expansion projects to several oil refineries in addition to building new plants, which will decrease the relative price of petroleum products.
Upon the completion of expansion, Al-Ruwais oil refinery will be fully operational by the end of the current year, doubling the current production rate up to 415 thousand barrels per day. The refinery will begin production in November, according to Wednesday’s statement.
Sources predict that upon full operation, the refinery will produce 7-8 million tonnes of diesel per year and approximately four million tonnes of jet fuel per year. Currently, the refinery produces five to six million tonnes per year of diesel and jet fuel respectively.
Economic experts believe that ADNOC will be selling excess products to the European market upon reaching self-sufficiency domestically, adding that ADNOC is expected to compete with Indian oil refineries in the African market.
According to the expert’s statement on Wednesday, ADNOC enjoys strong ties in the European market, since the excess jet fuel is typically sold to European markets.
Domestically, ADNOC’s decision is expected to increase rivalry between import/export companies on supplying the European market.
ADNOC did not release any statements regarding the decision.