Abu Dhabi's petrochem industry to witness US$70 bln investment

13-Jan-09

The petrochemical industry of Abu Dhabi-UAE's capital and one of the largest oil exporters-is likely to witness US$70 bln investment by International Petroleum Investment Company (IPIC), city's government-owned energy company. Chemaweyaat, IPIC's partially owned joint venture is expected to invest US$20 bln in phase-1 and the remaining will be invested in phase-2 and phase-3. In addition, IPIC has inked a deal to acquire 70% stake of Germany's MAN Ferrostaal AG, part of MAN group and is slated to increase its stake in other two energy firms. However, the planned 250,000 bpd Khalifa Point refinery in Pakistan worth US$6 bln is under review by the company and is likely to be pushed back. The dearth of credit supply and decline in region's demand will postpone the completion of 500,000 bpd Fujairah refinery in the UAE.