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Modernization of the “Ruwais” Refinery Enhances Oil Security in the Emirates

June 12, 2024

The UAE is striving to bolster its oil security by diversifying its crude sources, following the modernization of its Ruwais refinery, which now has the capability to process a broader range of oil types.

Ship tracking data reveals that the National Oil Company, ADNOC, imported two cargoes of Iraqi crude oil in April and May, while also increasing its imports from Saudi Arabia.

This new trend is partly attributed to the upgrades at the Ruwais refinery, which now enable it to process heavier crudes more efficiently.

As a result, ADNOC is reducing its reliance on direct fuel oil (DFO), a key component of diesel fuel production, and is instead focusing on exporting high-value petroleum products such as Murban and Upper Zakum, which typically fetch higher prices on the global market.

This shift offers significant strategic benefits to the UAE. By diversifying crude sources, the country mitigates its exposure to disruptions from any single source and enhances its ability to meet the growing demand for high-value oil products, thereby supporting its economy.

Although ADNOC has not officially commented on these developments, its actions indicate a clear move towards enhancing energy security and sustainability in the long term.

This is a prudent strategy given the ongoing developments in the global energy landscapes countries strive to secure their oil supplies and ensure price stability.