Enoc awards pipeline deal for refinery expansion
29 August 2017
Enoc Group, the Dubai-based integrated oil and gas major, has awarded the final contract of three packages for its $1-billion Jebel Ali refinery expansion programme to Overseas-AST.
The engineering, procurement and construction (EPC) contract includes the construction of various interconnecting pipelines between the refinery’s processing units, the storage tanks and the berth facilities within Jebel Ali Free Zone (Jafza), said a Wam news agency report.
The pipelines will carry jet fuel, isomerate, and light and heavy naphtha and run in a dedicated corridor through Jafza. Part of the contract includes a non-destructive road crossing (NDRC), which will enable non-disruption of road traffic and utilities supply through the free zone.
Saif Humaid Al Falasi, group CEO of Enoc, said: "With primary energy consumption growing by 2.1 percent in the region, and the Middle East making up 6.7 percent of the share of global energy consumption in 2016, the expansion of the Jebel Ali refinery plays a key role in the region’s downstream strategy for exports and increasing domestic use.
"The refinery’s expansion is part of the group’s five-year strategic plan to secure uninterrupted energy supply in the UAE to the highest levels of efficiency and reliability. The final phase of the expansion also brings us a step closer to meeting the growing demand for clean energy and petroleum products locally as manufactured products will meet stringent Euro 5 standards," added Al Falasi.
Andrew Fanton, chief executive officer, Overseas-AST, said: "Overseas-AST is very pleased to be chosen by the Enoc Group to be part of this expansion project. Founded in 1898, Overseas-AST has established a strong track record in the successful delivery of near shore marine and civil infrastructure and top side mechanical installations in the Oil and Gas, Petrochemical, Power, Desalination, leisure and residential sectors in the UAE and neighbouring GCC countries. We strive to provide our clients with innovative and cost-efficient solutions that guarantee certainty of delivery and reliability. We look forward to working closely with the team at Enoc."
The refinery expansion project was announced in September 2016 with the main EPC contract for design and construction of the refinery’s new ancillary units awarded to Technip Italy. The second EPC package was awarded earlier this year to Rotary Engineering Fujairah FZE to construct 12 new storage tanks. The expected date for commercial production is the fourth quarter of 2019.
Once the expansion project is completed, the production capacity of the refinery will go up to 210,000 barrels per day from the current 140,000 bpd, enabling Enoc to meet the needs of the market and the wider industry.