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ADNOC inks deal with Rongshen Petrochemical

November 13/2019

MOSCOW (MRC) -- The Abu Dhabi National Oil Company (Adnoc) has announced the signing of a broad framework agreement with China’s Rongsheng Petrochemical to explore opportunities for mutual cooperation, said English.mubasher.

Under the agreement, the two companies will consider investments in the sale of refined products from Adnoc to Rongsheng, along with downstream investment opportunities in both China and the UAE, and the supply and delivery of liquified natural gas to Rongsheng, according to a company statement released.

"This framework agreement builds on the existing crude oil supply relationship between Adnoc and Rongsheng, which we are keen to enhance. The agreement covers domestic and international growth opportunities across a range of sectors," Adnoc’s group CEO Sultan Al Jaber.

The agreement will see Adnoc’s active participation as Rongsheng’s strategic partner in refinery and petrochemical opportunities, including investment in Rongsheng’s downstream complex.

"This Framework Agreement is a key milestone in Rongsheng Petrochemical’s strategic international expansion. ADNOC is an important trading partner, and we are confident of the win-win benefits of this partnership, particularly in realising opportunities in the downstream space in Asia," Rongsheng’s chairman Li Shuirong commented.

ADNOC plans to invest USD45 billion with partners to expand its refining and petrochemical production in Ruwais. The company pumps most of the UAE's oil production of around 3 million b/d. It plans to boost its oil production capacity to 4 million b/d by 2020 and 5 million b/d by 2030.

As MRC informed in the late October, The Abu Dhabi National Oil Company (ADNOC), Adani Group (Adani), BASF SE (BASF) and Borealis AG (Borealis) have signed a Memorandum of Understanding (MoU) to engage in a joint feasibility study to further evaluate a collaboration for the establishment of a chemical complex in Mundra, Gujarat, India.  The collaboration includes evaluating a joint world-scale propane dehydrogenation (PDH) plant to produce propylene based on propane feedstock to be supplied by ADNOC. Propylene will be partially used as feedstock for a polypropylene (PP) complex, owned by ADNOC and Borealis, based on proprietary state-of-the-art Borealis Borstar technology.

According to MRC's ScanPlast report, the PP consumption in the Russian market was 909,260 tonnes in January-August 2019, up by 10% year on year. Shipments of PP block copolymer and homopolymer PP increased.

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.
Author:Anna Larionova
Tags:petroleum products, PP, PE, petrochemistry, ADNOC.
Category:General News
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