ADNOC announces USD45B investment plan to become leading downstream player

MOSCOW (MRC) – The Abu Dhabi National Oil Company (ADNOC) today unveiled plans to invest AED 165 billion (USD45 billion) alongside partners, over the next five years, to become a leading global downstream player, enabling it to further stretch the value of every barrel it produces to the benefit of ADNOC, its partners and the UAE, as per Hydrocarbonprocessing.

The plans were unveiled at the ADNOC Downstream Investment Forum, which took place today in Abu Dhabi, UAE. The unprecedented investment program will underpin a new downstream strategy to significantly expand ADNOC’s refining and petrochemical operations at Ruwais in the UAE, and undertake highly targeted overseas investments to secure greater market access.

Building on the existing strengths and competitive advantages of the Ruwais Industrial Complex, ADNOC will create the world’s largest and most advanced integrated refining and petrochemicals complex. Through a combined program of strategic partnerships and investment, ADNOC will increase its range and volume of high-value downstream products, secure better access to growth markets around the world and create a manufacturing ecosystem in Ruwais that will significantly stimulate In-Country Value creation, private sector growth and employment. The strategy is expected to add more than 15,000 jobs by 2025 and contribute an additional 1% to GDP per year.

H.E. Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, said: "Given the projected increase in demand for petrochemicals and higher value refined products, we are repositioning ADNOC to become a leading global downstream player. We will invest significantly in Ruwais and open up attractive partnership and co-investment opportunities along our extended value chain to create a powerful new downstream engine and springboard for growth that will benefit our country, our company and our partners."

"Importantly, the expansion plans for Ruwais will also support Abu Dhabi and the UAE’s economic development and diversification, create high-skilled jobs and enhance the country’s status as a globally attractive destination for energy investments", he added.

ADNOC’s downstream investment plans are in line with its 2030 strategy of a more profitable upstream, more valuable downstream and sustainable, economic gas supply, underpinned by more proactive and adaptive marketing and trading. Building on its legacy of success, ADNOC has undertaken a significant group transformation program over the last two years. The business has improved operational efficiency, enhanced performance and realigned the management of its portfolio of assets and capital to create a new and expanded partnership and investment model.

ADNOC is now accelerating this transformation by unveiling its plans to become a leading global downstream player. The new strategy will be supported by ADNOC’s 45 year plus legacy of a unique and open approach to partnerships, built on the UAE’s bedrock values, reliability and attractiveness. ADNOC will again look to create long term downstream partnerships, providing access to the most attractive parts of the energy value chain, to redefine ADNOC’s future growth.
MRC

MOSCOW (MRC) -- Bangkok-based petrochemical producer Indorama Ventures has agreed to buy a 65.72 percent stake in Israel’s Avgol Industries for about USD314 million, said Reuters.

Indorama will pay 5.78 shekels per share for a 50.76 percent in Avgol held by HFH International, and 14.96 percent owned by Leumi Partners, a subsidiary of Bank Leumi.

Bank Leumi said it expects a pre-tax gain of 118 million shekels (USD33 million) from the sale.

The Transaction is considered an acquisition of assets in accordance with the Notification of the Capital Market Supervisory Board No. TorJor. 20/2551, Re: Rules on Entering into Material Transactions Deemed as Acquisition or Disposal of Assets (as amended), and the Notification of the Board of Governors of the Stock Exchange of Thailand Re: Disclosure of Information and Other Acts of Listed Companies Concerning the Acquisition and Disposition of Assets B.E. 2547 (2004) (as amended) (collectively referred to as the "Acquisition or Disposal Notification"). According to the Acquisition or Disposal Notification, the Company needs to calculate its transaction size percentage by considering four criteria. The total transaction size of the Transaction calculated based on the total value of consideration criterion, which gives the highest transaction value, and after computation with the transaction size of the Company's other acquisition transactions within the past 6 months, is equivalent to 16.65 percent that based on the value of total assets in consolidated financial statement ended December 31st, 2017. This 16.65 percent transaction size falls in between 15 - 50 percent which shall be determined as Class 2 transaction under the Acquisition or Disposal Notification.
MRC

MOSCOW (MRC) -- Leading polymer producer Borealis will focus on advancing major global growth projects throughout 2018, CEO Mark Garrett said, as per Apic-online.

Speaking to S&P Global Platts, Garrett highlighted Borealis and Nova Chemicals joint venture with Total on the US Gulf, which includes the construction of an ethane steam cracker in Port Arthur, as one such major global growth project.

Investment plans for a new propane dehydrogenation (PDH) unit at Kallo, Belgium, at the company's existing site near Antwerp, will also be a major focus of attention in 2018.

Garrett previously said a final investment decision on the PDH unit would be made in September.

"Then we have the Borouge 4 project in the UAE, which is a little bit further away from the final investment decision than the other two," Garrett said.

Borealis' joint development agreement with United Chemical Company for the creation of a polyethylene project with an integrated ethane cracker in Kazakhstan, is the fourth major project Borealis is working on.

"We have these four really big, significant (projects). We have other projects as well, but these are all the sort of multi-billion dollar megaprojects," Garrett said.

As MRC informed earlier, in April 2016, Borealis AG and PAO Gazprom, the world's gas major, signed a Memorandum of Understanding. The document reflects the parties' interest in evaluating opportunities to develop joint gas chemical projects in Russia.

Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. With headquarters in Vienna, Austria, Borealis currently employs around 6,500 and operates in over 120 countries.
MRC

MOSCOW (MRC) -- Solvay has celebrated the opening of Solvay Solar Energy-Jasper County, South Carolina’s largest solar farm, which helps meet the increasing demands from customers to source products manufactured with renewable energy, as per the company's press release.

Last year Solvay agreed to buy all the renewable energy certificates (RECs) produced by the 71.4-megawatt farm for 15 years, with more than 250,000 solar panels covering an area as large as 500 soccer fields. Owned by Dominion Resources, Inc., the farm was commissioned in December 2017.

"This agreement is part of Solvay's plans to expand its renewable energy sources to reduce our own greenhouse gas intensity as well as those of our customers, including Apple, which uses renewable power for its own operations," said Jean-Pierre Clamadieu, CEO of Solvay.

"We’re thrilled to work alongside our suppliers like Solvay to transition to cleaner energy sources. Renewable energy investments are good for the environment and good for business. This is why Apple is now powered by 100 percent renewable energy and 23 of our suppliers, including Solvay, have committed to using 100 percent renewable energy," said Lisa Jackson, Apple’s Vice President of Environment, Policy and Social Initiatives.

Solvay’s Specialty Polymers Global Business Unit has pledged to use 100 percent renewable power for all Apple production, currently across 10 manufacturing facilities in six countries. Solvay supplies materials used in Apple devices, such as the iPhone’s antenna band.

As MRC informed before, in early July 2016, Solvay completed the divestment of its shareholding in Inovyn (London), bringing to an end Solvay's chlorvinyls joint venture with Ineos. Solvay received exit cash proceeds amounting to EUR335 million (USD370.7 million). The dissolution of the jv follows regulatory clearances from the relevant authorities.

Inovyn was formed on 1 July 2015 as a jv between Ineos and SolVin, a subsidiary of Solvay. Solvay and Ineos signaled their decision to end their chlorvinyls jv in March this year.

Solvay, with a market share 27%, is the second largest PVC manufacturer in Europe, after Kerling with 29% of the market. Solvay is headquartered in Brussels with around 24,500 employees in 61 countries. Net sales were EUR10.1 billion in 2017, with 90% from activities where Solvay ranks among the world’s top 3 leaders, resulting in an EBITDA margin of 22%.
MRC

MOSCOW (MRC) -- PTT Global Chemical (PTTGC) has announced that Auria Biochemicals Co., a joint venture of PTTGC and Myriant Corp., will be dissolved, as per Apic-online.

On 12 Apr. 2018, at a general meeting of Auria shareholders, a resolution was passed to dissolve the joint venture, which was established in 2013 to conduct research and development of bio-based chemicals in order to enhance Myriant's technology. Myriant is a wholly-owned subsidiary of PTTGC.

PTTGC said the decision was based on low crude oil prices and "unfavorable" conditions for applying intellectual
property on bio-based succinic acid in South East Asia making it not feasible to invest in commercial production.

As MRC wrote before, PTTGC restarted LLDPE plant on 3 April, 2016, following a maintenance turnaround. The plant was shut for maintenance in early-March 2016. Located at Map Ta Phut in Thailand, the LLDPE plant has a production capacity of 400,000 mt/year.

PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.
MRC