ADNOC and China’s Rongsheng Explore Opportunities
Abu Dhabi National Oil Company (ADNOC) has signed a broad framework agreement with China’s Rongsheng Petrochemical to explore domestic and international growth opportunities in support of ADNOC’s 2030 growth strategy.
The companies will examine opportunities in the sale of refined products from ADNOC to Rongsheng, downstream investment opportunities in both China and the United Arab Emirates (UAE) and the supply of liquified natural gas (LNG) to Rongsheng.
Under the terms of the deal, the companies will also study chances to increasing the volume and variety of refined product sales to Rongsheng as well as ADNOC’s participation as the China firm’s strategic partner in refinery and petrochemical projects. This could include an investment in Rongsheng’s downstream complex.
In return, Rongsheng will also look at investing in ADNOC’s downstream industrial ecosystem in Ruwais, UAE, including a proposed gasoline-to-aromatics plant as well as reviewing the potential for ADNOC to supply LNG to Rongsheng for use within its own complexes in China.
Sultan Al Jaber, the UAE’s minister of state, who is also CEO of ADNOC, said the agreement has the potential to open new markets for its growing portfolio of products and attract investment to support our downstream and gas expansion plans.
Rongsheng’s chairman Li Shuirong added that the cooperation will ensure that its project, which will have a refining capacity of up to 1 million bbl/day of crude oil, has adequate supplies of feedstock.
The Chinese group holds a 51% stake in Zhejiang Petroleum & Chemical Company (ZPC), which is currently building a major refining and petrochemical complex in Zhoushan, Zhejiang province, to comprise two oil refineries and two 1.4 million t/y ethylene plants. The first phase is due for completion in 2020. Saudi Aramco agreed in February 2019 to take over the Zhoushan government’s 9% share in the project.
In October, BP signed a Memorandum of Understanding with ZPC to study forming a 50:50 joint venture to build and operate a 1 million t/y acetic acid plant at the complex in Zhoushan.