Refining capacity in the UAE has been projected to go up by 28 per cent between 2000 and 2005, far surpassing overall Arab refining capacity, which is expected to grow by just 1.07 per cent in the same period.

It has been a long road from the days when Abu Dhabi's first refinery was commissioned in Umm Al Nar to produce 15,000 barrels per day (bpd).

The UAE's capacity expansion will be close to that of Saudi Arabia with 5.86 million tonnes from 20.71 million tonnes per year (tpy) in 2000 to 26.57 million tonnes in 2005. Saudi Arabia's refining capacity is projected to edge up to 87.78 million tonnes in 2005.

Adnoc's sales of products into the international oil markets increased significantly in 1981 when the Ruwais Refinery was commissioned with a design capacity of 120,000 bpd.

Emirates National Oil Company's (ENOC) 120,000 barrel per stream day (bpsd) condensate processing plant at Jebel Ali Free Zone was officially inaugurated in December 1999. In November 2000, the Abu Dhabi Oil Refining Company's (Takreer) Ruwais refinery achieved a full production capacity of 280,000 bpsd.

It is a far cry from the early days, when Abu Dhabi's first refinery was commissioned in Umm Al Nar to produce 15,000 barrels per day (bpd). It has since been expanded twice: in 1983 to 60,000 bpd crude processing capacity and then in 1993 to its present capacity of 85,000 bpd.

In 1990, the salt and chlorine plant was merged into the Umm Al Nar operations. Most of the refined oil products and feedstocks from Umm Al Nar are distributed within Abu Dhabi and some of the Northern Emirates. The refinery has continued to operate at more than 90,000 bpd.

The combined Umm Al Nar and Ruwais Refinery capacity of 225,000 bpd was more than doubled in 2000 with the commissioning of two 140,000 bpd condensate splitter units to process onshore Thamama and Asab condensate obtained from gas development projects.

In 1999, Takreer was formally established to take over the management of Adnoc's oil refining operations. Takreer is also responsible for operating and expanding the Ruwais General Utilities Plant (GUP) to meet the growing demand of the Ruwais Complex and the local community in that area.

After a period of consolidation, the Abu Dhabi National Oil Company (Adnoc) focused its efforts to expand and diversify its business activities.

The resulting restructure resulted in the Chemicals Directorate being formed in 1998 to focus on and implement the company's diversification plans in the petrochemical sector.

As a token of Adnoc's commitment to the environment, Takreer produces unleaded gasoline. It is planning a new project to convert the bulk of gasoline production to unleaded gasoline and to reduce the sulphur content of its diesel fuels, a project that is scheduled for completion in 2005.

The removal of more sulphur from oil products and gas, combined with the increased volumes being processed, has resulted in the rapid expansion of Takreer's sulphur granulation and export facilities to a capacity of 6,250 tonnes per day (tpd).

Takreer future plans include the launch of a Profit Improvement Programme to achieve a pacesetters' performance.

In the arena of chemicals, the Abu Dhabi Polymers Company Limited (Borouge), a joint venture company owned by Adnoc (60 per cent) and Borealis (40 per cent), is one of the few significant businesses in the UAE.

The project, also located in Ruwais, includes a 600,000 tonnes per year (tpy) ethane-based ethylene cracker and a 450,000 tpy polyethylene plant capable of swing production of bimodal Linear Low Density Polyethylene (LLDPE) and High Density Polyethylene (HDPE).

The polyethylene grades produced by Borouge, using Borealis' state of the art proprietary Borstar technology, will be more cost effective, substantially stronger and easier to process than conventional materials.

At least 150,000 tonnes of surplus ethylene will be exported until downstream projects based on ethylene are developed.

Borouge Ple Ltd, Singapore is the result of a 50:50 joint venture between Adnoc and Boreal with the aim of marketing polythene products made by Abu Dhabi Polymers Co Ltd (Borouge) and Borealis.

The Ruwais Fertiliser Industries (Fertil), established in 1980 as a joint venture between Adnoc and Total CFP (presently TotalFinaElf) as part of the industrialisation programme of Abu Dhabi, utilises lean gas supplied from the onshore fields of Bab, Asab and Thamama C to produce fertilisers and market them in the local and international markets.