Officials at the signing ceremony held in Shanghai.
Adnoc, Chinese group Wanhua seal long-term LPG contract
ABU DHABI, November 10, 2018
Abu Dhabi National Oil Company (Adnoc) said it has concluded a new long-term liquefied petroleum gas (LPG) sales agreement with Wanhua Chemical Group of China.
Wanhua Chemical Group is the world’s largest MDI producer and the biggest TDI supplier in Europe. It operates a world-scale, advanced C3/C4 petrochemical industrial chain in China, as well as high value added specialty chemical clusters.
Under the terms of the 10-year contract, Wanhua will purchase up to 1 million metric tonnes of LPG per annum, said Abdulla Salem Al Dhaheri, the marketing, sales and trading director at Adnoc after signing the deal with Kou Guangwu, the executive VP of Wanhua Chemical Group.
The agreement represents another important milestone in the expanding relationship between Adnoc and its partners and customers in China.
"This sales agreement with a major end-user of LPG, further reinforces Adnoc’s position as a major supplier of crude oil and petroleum products to the growing economies of Asia," remarked Al Dhaheri.
"At Adnoc, we remain committed to achieving the best commercial value from our products, expanding our client base and penetrating new markets, through a combination of both short and long term sales and trading opportunities," he added.
In line with its strategy to maximise value from its downstream refining, petrochemical and gas processing operations, Adnoc produces up to 10,500,000 metric tonnes per year of LPG. This is sold both locally in the UAE and internationally.
Guangwu said: "Through this long term supply agreement, we look forward to strengthening our strategic partnership with Adnoc. We will continue working on potential collaborations between our companies, either in China or in the UAE, to add more value to the ‘One Belt One Road’ project."
Wanhua Chemical Group is government owned but also publicly listed on the Shanghai Stock Exchange. The company has investment grade credit ratings from Moody’s, S&P and Fitch Ratings.
LPG is the main feedstock for Wanhua petrochemical units, with consumption demand of up to 6 million tons per annum projected by 2021.
It owns the world largest LPG underground cavern storage with total capacity of 2.4 million CBM as well as excellent port conditions with two 50K DWT dedicated VLGC berths.-TradeArabia News Service
