Abu Dhabi National Oil Company (ADNOC) signed two new agreements with Japanese Idemitsu Kosan and Thai company SCG Chemicals for the supply of a combined total of up to 1.5 million tons of naphtha per year, ADNOC announced on Wednesday.
'As part of ADNOC's 2030 growth strategy, we are prioritizing the fast-growing markets of Asia, where the demand for refined and petrochemical products is accelerating,' Abdulla Salem Al Dhaheri, director of marketing, sales and trading at ADNOC was quoted as saying.
ADNOC produces more than 12.5 million tons per annum of naphtha, which can be used as a feedstock to produce a variety of petrochemical-based products, including plastics, according to the company’s statement.
The naphtha is converted to olefins and then further converted to polyolefin resins. The products produced end up in applications including light-weight automotive components, essential utility piping and cable insulation, durable goods, a range of every-day plastics, detergent, CDs, milk bottles and food packaging.
'ADNOC is making significant investments in new downstream projects to grow its refining capability and expand its petrochemical production three-fold to 14.4 million tons per annum by 2025,' the statement read.
The planned expansion in the downstream business will see 'ADNOC create one of the world's largest integrated refining and petrochemical complexes at Ruwais, located in Abu Dhabi's Al Dhafra region,' the statement said.
Idemitsu Kosan produces a variety of basic chemicals, including olefins such as ethylene and propylene, and aromatics like benzene, para-xylene and styrene monomer. It is also a supplier of plastics for uses such as CD pressing and circuit boards.
SCG Chemicals is one of the largest integrated petrochemical companies in Asia. It manufactures and supplies a full range of petrochemical products ranging from upstream monomers to downstream polymers including polyethylene, polypropylene, polyvinyl chloride, and polystyrene.
By Huseyin Erdogan
Anadolu Agency
energy@aa.com.tr