ADNOC Signs Two New Three-Year Deals for the Sale of Up to 1.5 million Tons Per Year of Naphtha

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ADNOC Signs Two New Three-Year Deals for the Sale of Up to 1.5 million Tons Per Year of Naphtha

The Abu Dhabi National Oil Company (ADNOC) announced, today, that it has authorized 2 new contracts, with Idemitsu Kosan Co. Ltd. of Japan and SCG Chemicals of Thailand, for a combined quantity of up to 1.5 million tons of Naphtha each year.

These bargains adhere to the current statement from ADNOC that it had signed a comparable three-year agreement with Malaysia's Lotte Chemical Titan (LCT), among the largest polyolefin producers in South East Asia, for the sale of approximately 1 million heaps annually of naphtha.

Abdulla Salem Al Dhaheri, Director, Marketing, Sales and Trading at ADNOC, said: "As part of ADNOC's 2030 growth technique, we are focusing on the fast-growing markets of Asia, where the demand for fine-tuned and petrochemical products is increasing. These latest long-term deals, yet once again, show exactly how ADNOC is committed to making sure trustworthy and secure access to crucial polished and petrochemical products, as part of equally advantageous collaborations that create sustainable value.

Both sales arrangements were ended throughout check outs by ADNOC's Advertising, Sales and Trading Directorate to customers in Japan, South Korea and Thailand.

ADNOC produces more than 12.5 million lots per year of naphtha, which could be made use of as a feedstock to generate a selection of petrochemical based products, including plastics. The naphtha is converted to olefins and then further converted to polyolefin resins. The products created wind up in applications including light-weight auto components, important utility piping and wire insulation, durables, a series of every-day plastics, cleaning agent, CDs, milk containers and food packaging.

As part of its 2030 smart growth strategy, ADNOC is pursuing profitable and integrated Downstream development to fulfill the needs of the developing and increasing market for refined and petrochemical products, particularly in Asia, where the petrochemical market is set to double by 2030. Its Downstream technique will certainly permit ADNOC to increase margins by introducing possession versatility and product advertising initiatives.

ADNOC is making significant investments in new downstream projects to grow its refining ability and increase its petrochemical production three-fold to 14.4 mpta by 2025. Planned tasks include a world scale, mixed fluid feedstock Naphtha biscuit, along with financial investments in new refinery capability. As an outcome of the planned developments in its Downstream business, ADNOC will produce one of the world's largest incorporated refining and petrochemical complicateds at Ruwais, situated in Abu Dhabi's Al Dhafra region.

ADNOC will certainly be holding a major Downstream Investment Forum in Abu Dhabi on the 13th and 14th May 2018, where it will introduce more details of its Downstream Approach, consisting of the new Ruwais commercial center masterplan.

Idemitsu Kosan produces a selection of basic chemicals, including olefins such as ethylene and propylene, and aromatics like benzene, para-xylene and styrene monomer. It is additionally a provider of plastics for uses such as CD pressing and circuit card.

SCG Chemicals is among the largest incorporated petrochemical companies in Asia. SCG Chemicals produces and provides a complete range of petrochemical products ranging from upstream monomers to downstream polymers including polyethylene, polypropylene, polyvinyl chloride, polystyrene and MMA.