The partnership is expected to assist in the delivery of ADNOC's 2030 smart growth strategy
The Abu Dhabi National Oil Company (ADNOC) has entered into a framework agreement with China-based Rongsheng Petrochemical to look out for domestic and international expansion opportunities.
The opportunities will assist in the delivery of Adnoc’s 2030 smart growth strategy.
The deal will see ADNOC and Rongsheng explore opportunities in the sales of refined products from ADNOC to Rongsheng, downstream investment opportunities in both China and the UAE, and the supply and delivery of LNG to Rongsheng.
Under the terms of the agreement, both the companies will look out for opportunities to expand the volume and range of refined products sales to Rongsheng in addition to ADNOC’s participation as Rongsheng’s strategic partner in refinery and petrochemical opportunities, including funding in Rongsheng’s downstream complex.
On the other hand, the China-based company will also explore possible investments in ADNOC’s downstream industrial ecosystem in Ruwais, including the proposed Gasoline Aromatics Plant, GAP, and the possibility for ADNOC to supply and deliver LNG for utilisation by Rongsheng within its production factories in China.
UAE Minister of State and ADNOC Group CEO Al Jaber said: “The agreement covers domestic and 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.
“As we continue to successfully deliver our 2030 smart growth strategy, we are committed to working with partners who enable us to unlock and maximize value and help us secure access to new centers of global demand.”
The agreement supports ADNOC’s downstream expansion plans
The deal will help in ADNOC’s downstream development plans, which will see it create an integrated refining and petrochemicals complex in Ruwais while pursuing integrated margins for its own hydrocarbons with in-market investments.
Rongsheng Group chairman Li Shuirong said: “The strategic cooperation with ADNOC will ensure that our ZPC project, which will have a refining capacity of up to 1 million barrels per day (mbpd) of crude, has adequate supplies of feedstock.
“Our valued partnership will enable Rongsheng Petrochemical to continue its expansion into the international oil market and we are confident Rongsheng Petrochemical will achieve enhanced market share and recognition in the global marketplace.”