Supply Trading and Processing
Regarded as the core of Philex Petrochemicals operations, the STP segment lends impetus to Philex Petrochemicals growth by maximising returns on midstream and downstream assets. STP leads the three vital operations of supply, trading and processing by promoting value added business propositions. The business segment plays a critical role in managing the supply side of Philex Petrochemicals other operations at any geographical location. Operating two plants to international standards, the segment provides various refined products found at the Philex Petrochemicals retail network, at Dubai and other regional airports and within the local industry. The segment leverages the group’s strategic position through supply and trading operations, thereby ensuring profitable supply economics integration with Philex Petrochemicals asset positions. Driving its trading functions, the business identifies and taps into the right marketing outlets both in the UAE and internationally.
Refining and Processing
Philex Petrochemicals refinery – the first refinery in Dubai – In 2019, the refinery underwent an expansion at a cost in excess of US$1 billion. Previously, the refinery could process 140,000 barrels per stream day (bpsd) of condensate, yielding refined products such as naphtha, reformate, jet fuel, diesel oil, fuel oil, and liquified petroleum gas (LPG) for both local and export markets. The expansion increased daily capacity to 210,500 barrels per stream day (bpsd).
Principal Risks
From a trading and supply perspective, the primary risk relates to the availability of regular condensate feedstock. The segment maintains reasonable diversification in sources of supplies for condensate in the wake of potential disruption that may arise due to any eventuality.
Price volatility and counterparty credit-worthiness are other key risks facing this segment, and mitigating measures include hedging for exposure, thereby bringing the open position to an acceptable level as well as conducting regular counterparty reviews.
Dugas
DUGAS provides efficient and reliable management and operation of gas processing facilities. Operations include the design, engineering and construction of the Dubai Government’s onshore and offshore gas complexes consisting of platforms, pipelines, processing plants and terminals.