30/03/2018 05:37 AST
The Abu Dhabi National Oil Company (Adnoc) announced on Wednesday the signing of two new agreements, with Idemitsu Kosan of Japan and SCG Chemicals of Thailand, for a combined amount of up to 1.5 million tonnes of Naphtha per year.
These deals follow the recent announcement from Adnoc that it had signed a similar three-year agreement with Malaysia's Lotte Chemical Titan (LCT), one of the largest polyolefin producers in South East Asia, for the sale of up to one million tonnes per year of naphtha.
Abdulla Salem Al Dhaheri, Director of Marketing, Sales and Trading at Adnoc, said, "As part of Adnoc's 2030 growth strategy, we are prioritising the fast-growing markets of Asia, where the demand for refined and petrochemical products is accelerating. These latest long-term deals, yet again, demonstrate how Adnoc is committed to ensuring reliable and secure access to important refined and petrochemical products, as part of mutually beneficial partnerships that create sustainable value." Both sales agreements were concluded during visits by Adnoc's Marketing, Sales and Trading Directorate to customers in Japan, South Korea and Thailand.
Adnoc produces more than 12.5 million tonnes per annum of naphtha, which can be used as a feedstock to produce a variety of petrochemical based products, including plastics. The naphtha is converted to olefins and then further converted to polyolefin resins. The products produced end up in applications including light-weight automotive components, essential utility piping and cable insulation, durable goods, a range of every-day plastics, detergent, CDs, milk bottles and food packaging.
As part of its 2030 smart growth strategy, Adnoc is pursuing profitable and integrated Downstream growth to meet the needs of the evolving and expanding market for refined and petrochemical products, particularly in Asia, where the petrochemical market is set to double by 2030. Its Downstream strategy will allow Adnoc to boost margins by introducing asset flexibility and product marketing initiatives.
The Gulf Today
Please wait...
