ABU DHABI - GTL Project.

A gas-to-liquids (GTL) ADNOC-Shell JV to convert 550 MCF/day to 60,000 b/d of ultra-clean fuels was been put on hold in 1998 because of low oil prices. But in April 1999 a Shell spokeswoman said there were "no plans to halt the venture". Shell is also promoting GTL ventures in Iran, Egypt and other countries. Its process makes GTL profitable even if crude oil prices average $15/barrel.

The petrochemical sector in Abu Dhabi is small, consisting of a fertiliser complex at Ruwais, a polyvinyl chloride venture and a plant to produce chemicals such as chlorine, sodium hypochlorite, hydrochloric acid, etc. But in the fourth quarter of 2001, Abu Dhabi will have a big complex in Ruwais to produce 600,000 t/y of ethylene, 225,000 t/y of high density polyethylene (HDPE), and 225,000 t/y of linear low density polyethylene (LLDPE).

In a JV called Abu Dhabi Polymers Co. (Borouge), owned 60% by ADNOC and 40% by Borealis, the complex will cost about $1.2 bn. The $640m contract to build the ethylene plant was awarded on Nov. 10, 1998 to Linde-Bechtel and work is progressing on schedule. The contract calls for construction of offsites, utilities and buildings for central control, the administration and a fire station. The contract for the polyethylene units, to use the Borealis Borstar bi-modal technology, was awarded in 1999 to Tecnimont of Italy. The complex is near the Ruwais refinery and GASCO's plant. GASCO will supply the ethylene unit with tail ethane, which it will extract from onshore gas at the rate of 1.25m t/y. The project managers are Fluor Daniel and The Parsons Corp. Neste Engineering did the FEED for the HDPE and LLDPE plants. ADNOC and Borealis have a 50-50 marketing JV in Singapore for sales in Asia, with Borealis to use its sales network in Europe as well.

Borealis, based in Copenhagen, is the biggest producer of polyethylene and polypropylene in Europe. International Petroleum Investment Co. (IPIC), which is 50-50 owned by ADNOC and the Abu Dhabi Investment Authority, in May 1998 bought 25% into Borealis and another 25% was bought by OeMV of Austria in which IPIC has 19.56%. The other 50% in Borealis is held by Statoil of Norway. IPIC and OeMV bought their stakes from Neste Oy, with OeMV having sold its petrochemical unit PCD Polymers to Borealis (see DT No. 3).

ADNOC in October 1999 cancelled a project to have a $500m plant built at Ruwais to produce 520,000 t/y of ethylene di-chloride and 420,000 t/y of caustic soda, chemicals used in the salt industry. In a notification letter to three bidders - Chiyoda Corp., Bechtel and Krupp Uhde - ADNOC simply said the decision was the result of a change in strategy and planning. This will badly affect Borouge, which was to supply the EDC complex with 150,000 t/y of ethylene by early 2002. The plant was have a chlor alkali unit to produce 1,200 t/d of chlorine, and units to produce salt for domestic consumption and hydrogen for the Ruwais oil refinery. The project was to include development of a salt dome at Jebel Dhanna with a brine producing facility and a pipeline to take the product to Ruwais. Brown & Root was the project manager.

ADNOC keeps delaying an aromatics project in Ruwais, planned since the late 1980s, to produce paraxylene and benzene. If and when this is approved, it will take naphtha from the Ruwais refinery's condensate units.

Fertiliser Industries (Fertil) runs an ammonia/urea plant at Ruwais. ADNOC's share in this is 66.66%, with TotalFinaElf holding the rest. Incorporated in October 1980, it produces over its nameplate capacity. Most of its output goes to China and India. It has a marine terminal, adjacent to the fertiliser complex, within Jebel Dhanna-Ruwais port area. It is to raise its capacity to 1,400 t/d of ammonia (from 1,000 t/d) and 2,100 t/d of urea (from 1,500 t/d).

Other firms in the chemical sector are National Chlorine Industries (NCI) and the National Plastic Pipe Co. NCI is wholly owned by ADNOC and operates a plant at Umm Al Nar producing sodium chloride, chlorine, caustic soda, hydrochloric acid and sodium hypochlorite mainly for local use. Some output is exported to other GCC states. National Plastic Pipe Co. is a partnership between ADNOC (51%) and Itochu Corp. of Japan (49%). It has produced PVC from a plant at the Mussaffah industrial zone in southern Abu Dhabi since 1976.