ADNOC to Create Chemicals Investment Platform
Abu Dhabi National Oil Company (ADNOC) has signed a joint venture agreement with diversified holding company ADQ to create a new chemicals investment platform for funding and developing industrial projects at the proposed Ruwais Derivatives Park.
The venture, in which ADNOC will hold the majority 60% with ADQ holding the remaining 40%, combines the former’s strong hydrocarbon feedstock position in Ruwais and longstanding international relationships with ADQ’s extensive portfolio that includes local and international logistics, transport, energy, water and industrial construction.
Sultan Ahmed Al Jaber, ADNOC’s CEO and the United Arab Emirates’ Minister of Industry and Advanced Technology, said the partnership will expand on existing efforts to maximize the value of its assets in Ruwais, kick start the development of the UAE’s downstream derivatives sector and support the transformation of Ruwais into a global hub for industry, attracting additional foreign direct investment.
The partners will jointly conduct a feasibility study to further develop identified projects and advance those that they believe show maximum potential for creating value. They plan to announce the results by the end of 2020, including providing details on selected target projects and the range of potential opportunities for prospective investors and partners.
ADNOC and long-term partner Borealis are currently developing Borouge 4, their fourth joint-venture complex, which the state-owned oil group said will be a core enabler of the Ruwais Derivatives Park and support feedstock production for its anchor projects.
The Borouge 4 complex is centered on a mixed feedstock cracker and downstream polyolefin and non-polyolefin derivatives units. Start-up is scheduled for 2023.
As part of its 2030 strategy, ADNOC aims to expand petrochemical production from 4.5 million t/y to 11.4 million t/y by 2025.
