The Gulf region, known for its abundant crude oil reserves, is currently undertaking several refinery projects aimed at boosting the refining and petrochemicals industry. These projects, with a combined investment of over $40 billion, are expected to have a significant impact on the region’s economy. Here are the top five ongoing refinery projects in the Gulf region:
- Al Zour New Refinery: This $16 billion project is being carried out by Kuwait Integrated Petroleum Industries Co (KIPIC), an affiliate of Kuwait Petroleum Corp. The Al Zour refinery, designed to process heavy crudes, consists of three crude distillation units (CDU). The first CDU is already operational, and the second CDU is in the process of starting up. Once fully operational, it will become one of the largest single-phase refineries in the GCC region and supply 225,000 barrels per day (b/d) of low-sulfur fuel oil for power generation.
- Aramco’s Ras Tanura and Riyadh Refineries: Saudi Arabia has invested in three greenfield refineries with a capacity of 400,000 b/d each over the past decade. The Jazan refinery, owned by Saudi Aramco, is already operational, followed by Jubail (SATORP), a joint venture with TotalEnergies, and Yanbu (YASREF), a joint venture with Sinopec. Additionally, brownfield investments are ongoing at the Ras Tanura and Riyadh refineries, focusing on improving fuel quality to meet Euro-V specifications.
- ADNOC’s Crude Flexibility Project: ADNOC is undertaking a $3.5 billion Crude Flexibility Project to enhance the processing capabilities of its refinery in Ruwais, Abu Dhabi. The project aims to enable the refinery to process up to 420,000 b/d of heavier and sourer grades of crude, including Upper Zakum grade crude from offshore fields and other varieties sourced globally. This project will enhance ADNOC’s operations, allowing it to adopt a market-driven approach to selecting feedstock and increase the availability of premium grade Murban crude for export.
- BAPCO Modernisation Program: The Bapco Modernization Program (BMP) in Bahrain is a massive $6 billion project that aims to increase the processing capacity of the country’s only oil refinery from 267,000 b/d to 360,000 b/d. By upgrading aging facilities, the program seeks to meet future challenges, leave a lasting legacy, and have a significant multiplier effect on the Bahraini economy. It is the largest capital investment in the history of Bapco, spanning its 90-year existence.
- Duqm Refinery & Petrochemical Complex: With an overall budget of $7 billion, the Duqm refinery project in Oman is part of the government’s larger plan to develop the Duqm area. The refinery will have a capacity of 230,000 b/d and will primarily process crude oil imported from Kuwait (65%) and supplied by the Sultanate (35%). Its main products will include diesel, jet fuel, naphtha, and LPG. The refinery project comprises various units such as hydrocracking, hydro-treating, delayed coking, sulphur recovery, hydrogen generation, and merox treating units. In April 2023, the crude oil distillation unit of the refinery began operations, indicating operational readiness for all units.
These ongoing refinery projects in the Gulf region highlight the significant investments being made to meet domestic demand, diversify the economy, and increase refined product exports.
