The Abu Dhabi National Oil Company, ADNOC, and Cepsa today signed a Memorandum of Understanding, MoU, to evaluate a new world-scale Linear Alkyl Benzene, LAB, complex in Ruwais, Abu Dhabi.

LAB is the most common raw material in the manufacture of biodegradable household and industrial detergents. It is also used in house cleaners, fabric softeners, and soap bars.

The agreement was signed by Abdulaziz Al Hajri, Downstream Director of ADNOC, and Pedro Miro, CEO of Cepsa, in the presence of Suhail Mohammed Faraj Al Mazroui, UAE Minister of Energy and Industry, member of the board of directors of Mubadala Investment Company and Chairman of Cepsa, Dr. Sultan Al Jaber, Minister of State, and ADNOC Group CEO, and Musabbeh Al-Kaabi, CEO of the Petroleum and Petrochemicals in Mubadala Investment Company.

The companies plan to progress the basic engineering of the proposed LAB complex in 2018. It is envisaged that the facility will be integrated with the Ruwais refinery complex, and will incorporate DETAL-PLUSTM technology.

Al Hajri said, "This agreement provides the opportunity to work with Cepsa to identify areas for mutual collaboration that will contribute to our plans to maximise the value from every barrel we produce. ADNOC has a rich history of working with partners to unlock opportunities in its operations. Such partnerships continue to be an important enabler of our growth strategy and we see exciting opportunities ahead. We look forward to working with companies, such as Cepsa, to realise our ambitious growth goals."

Cepsa, a Spanish integrated oil company, wholly owned by Abu Dhabi’s Mubadala Investment Company, has similar growth aspirations and over five decades of experience in LAB.

Miro said, "ADNOC and Cepsa bring complementary strengths to the project, ADNOC providing resources and expertise in the feedstock area from its state-of-the-art refinery in Ruwais, while Cepsa as a LAB market leader, provides the leading LAB technology, DETAL-PLUSTM jointly developed by CEPSA and UOP, coupled with commercial and operational expertise."

Al Kaabi said, "We welcome this further extension of the co-operation between ADNOC and our portfolio companies. This development is a strong example of our role in supporting the diversification of Abu Dhabi's industrial base. It will also help maintain Cepsa’s global leadership position in LAB, providing a base to meet growing demand both in the region and beyond into Asia."

The Indian Ocean Basin LAB market is expected to grow at a CAGR of 5 percent between 2016 and 2030, according to the latest market research, conducted by Colin A. Houston and Associates, a leading global market research and advisory company.