The Abu Dhabi National Oil Co. (ADNOC) has signed two agreements with Idemitsu Kosan Co. Ltd. and SCG Chemicals for a total of up to 1.5 million tpy of naphtha.
Both sales agreements were concluded during visits by ADNOC’s Marketing, Sales and Trading Directorate to customers in Japan, South Korea and Thailand.
The deals follow ADNOC’s announcement that it had signed a similar three-year agreement with Malaysia’s Lotte Chemical Titan (LCT), one of the largest polyolefin producers in Southeast Asia, for the sale of up to 1 million tpy of naphtha.
ADNOC produces more than 12.5 million tpy 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.
As part of its 2030 smart growth strategy, the company 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.
ADNOC is making significant investments in new downstream projects to grow its refining capability and expand its petrochemical production three-fold to 14.4 million tpy by 2025. Planned projects include a world scale, mixed liquid feedstock naphtha cracker, as well as investments in new refinery capacity. As a result of the planned expansions in its Downstream business, ADNOC will create one of the world’s largest integrated refining and petrochemical complexes at Ruwais, located in Abu Dhabi’s Al Dhafra region.
Abdulla Salem Al Dhaheri, Director, Marketing, Sales and Trading at ADNOC, said: “As part of ADNOC’s 2030 growth strategy, we are prioritizing 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.”
Read the article online at: https://www.hydrocarbonengineering.com/refining/29032018/adnoc-signs-naphtha-agreements/