ADNOC Signs Three-Year Deal for the Sale of up to One Million Tonnes Per Year of Naphtha
The Abu Dhabi National Oil Company (ADNOC) signed, today, a contract with Lotte Chemical Titan (LCT), among the biggest polyolefin producers in South East Asia, for the sale of up to one million tonnes annually of naphtha to the Malaysian petrochemicals' company, over the next three years.
The long-term arrangement, which builds on the business' 20 years long business partnership, was authorized at ADNOC's Home office by Abdulla Salem Al Dhaheri, Director, Advertising And Marketing, Sales and Trading, at ADNOC, and Lee Dong Woo, President and Chief Executive Officer of LCT.
Al Dhaheri said: "With this agreement we are carrying out a new method towards our sales of naphtha. Formerly we have sold the item on shorter term, 1 year agreements. By switching over to a three-year contract we are catching long-lasting market accessibility and securing offtake. It is one more instance of just how ADNOC is committed to equally beneficial partnerships that develop sustainable worth for every person entailed."
ADNOC produces over 12 million tonnes each year of naphtha, which could be made use of as a feedstock to create a selection of petrochemical based products, including plastics. The naphtha is transformed to olefins and after that additional transformed to polyolefin resins. The products created end up in day-to-day applications varying from autos, durables, plastic detergent and milk containers and food product packaging.
Lee said: "Demand for petrochemicals in South East Asia is increasing gradually and this three-year contract with ADNOC will certainly ensure security of naphtha supply, allowing us to broaden and expand our item portfolio and improve our competitiveness."
Established in 1991, LCT is Malaysia's initial standalone manufacturer of polyolefins and Malaysia's biggest integrated producer of olefins and polyolefins. Its production website includes 12 plants, 2 co-generation plants and 3 tank farms. They lie on 2 websites in Pasir Gudang and Tanjung Langsat which operate as a solitary integrated petrochemicals facility. South Korean empire Lotte Chemical Corporation bought LCT in 2010 and since then it has become one of Lotte Chemical Company's largest abroad subsidiaries.
