Abu Dhabi National Oil Company (ADNOC) and its group of companies, Dr. Sultan Ahmed Al Jaber, confirmed that signing two agreements with the Anhua Chemical Industries Group is in line with the leadership's approach to building bridges of cooperation and forging partnerships with friendly countries around the world. That these two agreements will contribute to the promotion of bilateral cooperation between the UAE and the People's Republic of China.
This follows the signing ceremony of a framework agreement between ADNOC and the Chinese Anhui Chemical Industries Group, which aims to explore new opportunities for developing petrochemical cooperation in the UAE and China, as well as an agreement for the establishment of a joint venture in the field of shipping, benefiting from the contract of supply of LPG Which was signed between the two companies last November, which is valid for 10 years.
"The two agreements reflect ADNOC's approach to building smart partnerships that bring mutual benefits. The joint venture agreement in the field of shipping supports ADNOC's efforts to increase economic returns and enhance value from its LPG business portfolio by building on the existing cooperation between ADNOC And Anhui Chemical Industries Group in the LPG field.
Al Jaber said that the joint venture that ADNOC is planning to implement in the UAE and China offers unique advantages to the platforms that will be integrated and consolidated, which will benefit from the raw materials available in Abu Dhabi and ADNOC at competitive prices as well as the promising growth opportunities in China. ADNOC is an important step in its efforts to develop and diversify its business portfolio and strengthen Ruwais' position as a global hub in refining and petrochemicals, which are key pillars of its strategy to increase the value of existing resources and ensure its products reach To global markets through the development and expansion of its refining and petrochemical operations.
The two agreements were signed by Dr. Sultan Ahmed Al Jaber, Chairman of Anhui Chemical Industries Group, Zhengtai Liao.
According to the joint venture agreement, ADNOC Logistics and Logistics Group and Anhui Chemical Industries Group will establish a joint venture to ship liquefied petroleum gas (LPG), benefiting from the LNG contract signed between the two companies in Shanghai, China, in November 2018, which is valid for 10 years. . The joint venture involves the operation of two giant gas transport vessels. The two companies will improve their supply and value enhancement programs by collaborating in the operation and management of the two ships. ADNOC aims to enhance the value of its Liquefied Petroleum Gas (LPG) business portfolio.
ADNOC and Anhui Chemical Industries have signed an agreement to explore and develop opportunities for cooperation by establishing a joint venture in the UAE and China. According to the agreement, the joint venture to be established in the UAE will focus on the production of petrochemical derivatives, including the production of polyurethane from the value chain of chemicals produced from the Ruwais Integrated Refining and Petrochemical Complex in Abu Dhabi. The joint venture to be established in China will focus on exploring investment opportunities in developing And production of petrochemical products and their derivatives in Yantai City, Shandong Province, China.
ADNOC's two joint projects will allow the supply of more raw materials to Anhui Chemical Industries Group, which will further strengthen the established cooperation relations between the two companies. These opportunities provide both ADNOC and Anhua Chemical Industries with a platform to enhance their leadership in the petrochemical market and consolidate their expertise in modern technology, marketing and raw materials at competitive prices.
The total value of the joint venture between ADNOC and Anhua Chemical Industries is estimated at US $ 12 billion, which will contribute to enhancing the close trade and investment ties between the two companies, which are part of the strong strategic partnership between the energy sectors of the two friendly countries. The agreement underscores the steady development of the close relationship between the two companies, which culminated recently in the conclusion of ADNOC's long-term agreement with the Anhua Chemical Industries Group to supply LPG.
The combination of ADNOC's lead in the production of polyolefins and the expertise of the Anhua Chemical Group in the specialty materials markets enables the two companies to provide a wide range of end-use materials to customers in a number of sectors including construction, home appliances, automobiles, electronics And furnishings.
The collaboration between ADNOC and Anhua Chemical Industries will contribute significantly to the establishment of a number of additional petrochemical activities at the Ruwais Petrochemicals Complex and the new Ruwais Manufacturing Complex, leading to the creation of a large and sophisticated system. Petrochemicals in the UAE.
"We are looking at ADNOC as a reliable strategic partner, and we already have a strong and solid business relationship with LPG activities and we are pleased to see the strengthening of this relationship between ADNOC and Anhua," said Zengtai Liao, Including working to expand cooperation beyond the level of raw materials. "
"There are many common factors that are shared by ADNOC, including vision and ambitions. I am confident that this close cooperation will serve the implementation of our strategic plans by exploring and benefiting from the many areas of cooperation between the two companies."
As part of ADNOC's 2030 integrated strategy for smart growth, the company is growing and expanding in refining and petrochemicals.
At the heart of its new refining and petrochemical strategy is the AED 165 billion (US $ 45 billion) investment program aimed at developing and expanding the Ruwais industrial complex to become the world's largest integrated refining and petrochemical complex. The company will increase its production capacity from three petrochemicals Times to reach 14.4 million tons per year by 2025.
The attraction of Al Ruwais will ensure the supply of highly competitive raw materials as well as the ability to produce a full range of basic raw materials within the petrochemical industry. The Ruwais Petrochemicals Complex and Ruwais Industrial Complex will become a global destination for investors and manufacturers. In establishing their strategic presence in the UAE.
ADNOC's expansion plan and new investments in refining and petrochemicals will accelerate the implementation of its integrated 2030 strategy for smart growth, enhance the company's resilience and ensure its ability to keep abreast of changes in the energy sector, improve performance and increase profitability from every barrel of oil it produces. ADNOC's growth and expansion strategy in refining and petrochemicals is a key driver of Abu Dhabi's plans for growth and economic diversification, attracting more foreign and domestic direct investment, creating new specialized jobs and supporting ADNOC's local value added initiatives.
Anhua is developing in a variety of sectors that exceed its strong presence in the production of polyurethane.
The petrochemical sector is a key strategic area for future growth of Anhua. The company is currently undergoing a transformation from a regional player in the production of MDI to a global chemical company. It has launched its global development strategy for more than a decade after the successful acquisition of PORSODSCHEM in Europe in 2011 and a production center in the United States. Currently, Anhua is exploring the feasibility of producing petrochemical derivatives that target growth areas of emerging markets in the world.