ADNOC Signs Asian Naphtha Supply Deals
The Abu Dhabi National Oil Company (ADNOC) has signed agreements with Japan’s Idemitsu Kosan and Thailand’s SCG Chemicals for the sale of 1.5 million t/y of naphtha in total.
Abdulla Salem Al Dhaheri, ADNOC’s director of marketing, sales and trading, said the supply deals were part of the company’s 2030 growth strategy and it was prioritizing the fast-growing markets of Asia where demand for refined and petrochemical products was accelerating.
These agreements follow a previous one that was announced in January with Malaysia’s Lotte Chemical, which will see ADNOC supply up to 1 million t/y of naphtha under a three-year contract.
ADNOC, which produces more than 12.5 million t/y of naphtha feedstock, said it was pursuing profitable and integrated downstream growth, including product marketing initiatives, to meet the needs of an expanding market, particularly in Asia where the petrochemical market is set to double by 2030.
The company is also investing significant sums in new downstream projects to expand its petrochemical production threefold to 14.4 million t/y by 2025. Late last year, Abu Dhabi’s Supreme Petroleum Council (SPC) approved ADNOC’s plans to invest 400 billion dirhams ($109 billion) over the next five years.
