Serba Dinamik Annual Report 2019

106 2019 ANNUAL REPORT INDUSTRY IMPACT ON OUR BUSINESS SERBA DINAMIK HOLDINGS BERHAD value of USD9.4 billion. Phase II of this development focuses on the expansion of the existing ethane cracker and aromatics complex as well as the construction of at least 15 downstream chemical production plants. Jazan-Grassroots Export Refinery in Saudi Arabia with a project value of USD9 billion for the construction of a refinery with an associated marine terminal in southwest Saudi Arabia. The refinery facility is expected to have a capacity of 400,000 bpd of oil. Abu Dhabi Onshore Oil Production Capacity Increase Project in UAE with a project value of USD7.5 billion aims to increase Abu Dhabi's onshore oil production capacity from 1.4 mbpd to 1.8 mbpd. Al Fadhili Gas Plant in Saudi Arabia which with a project value of USD6.5 billion is expected to have a processing capacity of 2.5 billion cubic feet per day ("cfpd") of sour gas. The construction of the plant is conducted in three engineering, procurement and construction ("EPC") packages namely Package 1 for the construction of main processing facilities, Package 2 for the construction of Sulphur Recovery Unit and Package 3 for the construction of offsite and utilities. A pipeline package is also included in this project. PERFORMANCE OF THE DOWNSTREAM OIL AND GAS SECTOR IN THE MIDDLE EAST The Middle East oil and gas industry has been shifting its focus from the upstream sector towards the downstream sector to strengthen their portfolio for international sales amid weak crude oil price. Between 2014 and 2018, the output of petroleum products in the Middle East grew by a CAGR of 4.4% from6.8mbpd in 2014 to 8.0 mbpd in 2018. We provide MRO and IRM services to the downstream sector including crude oil refineries as well as LNG liquefaction and regasification facilities in the Middle East. As such, the size of such plants would be directly relevant to our business, especially in the countries that we provide MRO and IRM services. Figure 4-18 and 4-19 shows the estimated total capacity of crude oil refineries as well as LNG liquefaction and regasification plants in some of the Middle East countries served by our Group: Note: As at February 2019; MTPA = million tonnes per annum; (Source: Vital Factor analysis) Figure 4-18: Crude Oil Refineries Capacity Figure 4-19: LNG Liquefaction and Regasification Plant Nameplate Capacity (Source: Vital Factor analysis) Capacity ('000 bpd) Liquefaction Capacity (MTPA) Regasification Capacity (MTPA) Qatar Qatar UAE UAE Bahrain Bahrain Saudi Arabia Saudi Arabia 2,835 nil nil 260 nil nil 1,229 6 6 429 77 6 M I D D L E E A S T O I L A N D G A S I N D U S T R Y