Abu Dhabi National Oil Company (ADNOC) announced today that it has signed a new long-term agreement with China's Anhui Chemical Industries Group, which will purchase up to 1 million metric tons of LNG from ADNOC over the next ten years.
The agreement was signed by Abdulla Salem Al Dhaheri, Director of Marketing and Trade, ADNOC, and Ku Guanju, Executive Vice President of China's Anhui Chemical Industries Group. This agreement represents an important development that will contribute to the expansion of cooperation relations between ADNOC and its partners and customers in China.
"The signing of this new long-term agreement to sell LPG to a key end user will further strengthen ADNOC's position as a major supplier of crude oil and petroleum products to developing economies in Asia," said Abdulla Salem Al Dhahiri. Its products and contribute to the expansion of its customer base so that it can access new markets through the conclusion of short and long-term sales agreements and take advantage of all business opportunities. "
In line with the 2030 Smart Growth Strategy, which focuses on value enhancement through expansion in refining, petrochemicals and gas processing, ADNOC produces approximately 10,500,000 metric tons of LPG each year, marketed and sold locally and worldwide.
"We are one of the world's leading chemical companies and the largest LPG user in China, and we look forward to strengthening our strategic partnership with ADNOC," said Guanju, , And continue to explore areas of potential cooperation between our companies, both in China and in the UAE, to achieve more value from the One Way One Belt initiative.
China's Anhui Chemical Industries Group, a state-owned company, is also publicly listed on the Shanghai Stock Exchange. The company has strong credit ratings from Moody's, S & P and Fitch Ratings. The group is the world's largest producer of methylene diphenyl desocyanate (MDI) and the largest supplier of TDI to Europe. It also operates a series of world-class C3 / C4 petrochemical plants in China, a series of petrochemical complexes and production plants in China. China, Europe and the United States of America.
Liquefied petroleum gas (LPG) is the main raw material used by the Andhwa petrochemicals group, where the demand for LPG is expected to grow to 6 million tonnes per year by 2021. The group also has the world's largest underground LPG storage Total storage capacity of 1.2 million tons.
Over the past 14 years, ADNOC has strengthened its strategic partnership with Chinese companies by signing in 2014 the agreement to establish Yasat, a joint venture between ADNOC and China National Petroleum Corporation (CNPC). ADNOC recently signed a concession agreement in February 2017 under which the National Petroleum Corporation of China (CNPC) acquired a minority stake in Abu Dhabi's offshore oilfields. In March of this year, China National Petroleum Corporation (CNPC), through which China holds a majority stake, 10% in the "Umm Al Sheef & Nasr" concession and 10% in the Lower Zakum concession. In July, ADNOC and China National Petroleum Corporation (CNPC) signed a framework strategic cooperation agreement aimed at consolidating strategic partnership in the energy sector between the UAE and the People's Republic of China.
ADNOC is focusing on the expansion of the Chinese and Asian markets where demand for petrochemical and plastic products, including light components made of plastics for automotive, pipe and insulation, is expected to double in Asia by 2040. China is the largest market for Borouge The joint venture between ADNOC and Borealis of Austria), where Borouge exports 1.2 million tons of polyolefins per year to China, equivalent to one-third of its sales worldwide.