ABU DHABI / WAM
The Abu Dhabi National Oil Company (Adnoc), on Tuesday announced that it has signed a broad Framework Agreement with China’s Rongsheng Petrochemical Co., Ltd. to explore domestic and international growth opportunities which will support the delivery of its 2030 smart growth strategy.
The agreement will see both companies explore opportunities in the sale of refined products from Adnoc to Rongsheng, downstream investment opportunities in both China and the UAE, and the supply and delivery of liquified natural gas (LNG), to Rongsheng.
The agreement was signed by Dr Sultan Al Jaber, Minister of State and Adnoc Group CEO, and Li Shuirong, Chairman of Rongsheng Group.
Under the terms of the Framework Agreement, Adnoc and Rongsheng will explore opportunities for increasing the volume and variety of refined products sales to Rongsheng as well as Adnoc’s active participation as Rongsheng’s strategic partner in refinery and petrochemical opportunities, including an investment in Rongsheng’s downstream complex.
In return, Rongsheng will also explore potential investments in Adnoc’s downstream industrial ecosystem in Ruwais, including the proposed Gasoline Aromatics Plant (GAP), and the potential for Adnoc to supply and deliver LNG for utilisation by Rongsheng within its production complexes in China.
Commenting on the agreement, Dr Al Jaber said, “As we continue to successfully deliver our 2030 smart growth strategy, we are committed to working with partners who enable us to unlock and maximise value and help us secure access to new centres of global demand.”
“This Framework Agreement builds on existing crude oil supply relationship between Adnoc and Rongsheng, which we are keen to enhance. The agreement covers domestic, international growth opportunities across a range of sectors, which have the potential to open new markets for our growing portfolio of products and attract investment to support our downstream and gas expansion plans,” he added.
The framework agreement supports Adnoc’s downstream expansion plans, which will see it create a world scale integrated refining and petrochemicals complex in Ruwais while pursuing integrated margins for its own hydrocarbons with in-market investments.
China is the world’s second-largest oil consumer, and Chinese energy companies have steadily increased their participation in Adnoc’s Upstream and Downstream operations. At the same time, Adnoc has identified China as an important growth market for its crude oil and petrochemical products, as it moves towards boosting its oil production capacity to 4 million barrels per day by the end of 2020 and 5mbpd in 2030 and accelerates the implementation of its downstream expansion and international investment strategies.