Abu Dhabi in $3b Borouge expansion
By Himendra mohan kumar, Staff Reporter GULF NEWS / Published: August 02, 2007, 23:15
Abu Dhabi: Abu Dhabi will invest Dh11 billion ($3 billion) to expand the capacity of the Borouge petrochemicals facility to two million tonnes per year.
Abu Dhabi, which has 98 billion barrels of proven crude oil reserves, has targeted an increase in its production capacity to four million barrels of oil per day, as well as raising its natural gas supplies through the development of sour gas reserves and optimisation of existing sweet gas production.
Earlier this week, The Executive Council of Abu Dhabi in its policy agenda for 2007-08 said: “Current targets are to expand oil and gas production capacity significantly. Abu Dhabi is adding oil and gas and natural gas liquids production capacity each year through the application of better processes, products and technology. The phased approach is a deliberate strategy to ensure that the Emirate continues to provide the highest quality while steadily raising capacity.”
With its hydrocarbon reserves and relatively low production costs, Abu Dhabi has a natural advantage in a range of downstream industries.
“Opportunities in base oil and petrochemicals will be leveraged to enhance the value of energy exports and support diversification of growth across the economy,” it added.
“A key priority in Abu Dhabi’s capacity expansion will be the timely development and delivery of energy resources to meet growing domestic demand,” said the policy agenda document.”
Additionally, it said “investment entities affiliated with the Abu Dhabi government will also continue to pursue geographical diverification of Abu Dhabi’s energy interests via strategic investments in upstream and downstream hydrocarbon assets outside of Abu Dhabi and the UAE”.
The Executive Council also said the energy sector will be expected to continue increasing its contibution to an even more diverse Abu Dhabi economy, “not only via increased production capacity, but also via efficiency and productivity realised through continuous technological and managerial innovation.”