Media ININ Economy We Trust
Media IN BEIJING, 23rd July, 2019 (WAM)
The Abu Dhabi National Oil Company ADNOC, signed on Tuesday, a $12 billion Partnership Framework Agreement with China’s Wanhua Chemical Group Co, to explore the collaborative development of new opportunities in the downstream sector in the United Arab Emirates, UAE, and China.
Both companies also signed a shipping joint venture agreement based on a 10-year liquefied petroleum gas (LPG) supply contract signed in November 2018.
Under the shipping joint venture, ADNOC Logistics & Services and Wanhua Chemical will establish a partnership for LPG transportation including the operation of two VLGCs, or Very Large Gas Carriers.
In a related vein, Adnoc awarded a number of front-end engineering design contracts to the Middle Eastern arm of Germany-based consulting and engineering firm Bilfinger
The UAE JV would be focused on producing downstream derivatives, including polyurethanes value chain chemicals at ADNOC’s integrated refining petrochemicals complex in Ruwais, Abu Dhabi.
The China JV would focus on exploring investment opportunities for the development and production of petrochemical and derivative products in Yantai, Shandong Province, China.
These JVs will yield increased feedstock supplies from ADNOC to Wanhua and further strengthen the existing long-term relationship between both companies.
The opportunities will allow ADNOC and Wanhua Chemicals to combine and leverage their market leadership and expertise in technology, marketing and competitive feedstocks.
