The state-owned oil major signed three-year agreements with Idemitsu Kosan and SCG Chemicals
Adnoc to supply Thailand, Japan with Naphtha for three years
Abu Dhabi National Oil Company, which produces more than 12.5 million tonnes per year of naphtha, signed two three-year agreements to sell a combined supply of up to 1.5 million tonnes of the oil product naphtha to Idemitsu Kosan of Japan and SCG Chemicals of Thailand.
The agreements follow the recent Adnoc deal to provide Malaysia’s Lotte Chemical Titan with up to 1 million tonnes per year of naphtha, which is a refined oil product that is used as feedstock to produce petrochemicals.
“As part of Adnoc’s 2030 growth strategy, we are prioritising the fast-growing markets of Asia, where the demand for refined and petrochemical products is accelerating,” Abdulla Al Dhaheri, director of marketing, sales and trading at Adnoc said in a statement on Wednesday. “These latest long-term deals, yet again, demonstrate how Adnoc is committed to ensuring reliable and secure access to important refined and petrochemical products, as part of mutually beneficial partnerships that create sustainable value.”
Adnoc is set to announce a downstream strategy soon, as it looks to profit more from the sale of products. Abu Dhabi, which produces much of the country’s oil and gas and accounts for 6 per cent of global crude reserves, aims to double refining and triple petchems capacities by 2025.
At the centre of Adnoc’s downstream strategy is its construction of what is intended to be the world’s largest integrated refining and chemical site in the world in Ruwais in the Western region.
Adnoc is also striking long-term deals, especially in Asia where demand for such products is on the rise.
Last year, the producer said it was ramping up production of high-grade polymer products to meet demand from China’s car industry as well as the country’s investment in gas and electricity infrastructure.
Demand in China and Asia for petchems and plastics, including lightweight automotive components, essential utility piping and cable insulation, is forecast to double by 2040, according to Adnoc.