UAE's Adnoc, China's Wanhua Chemical enter $12bn collaboration

| July 24, 2019

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The UAE’s Abu Dhabi National Oil Company (Adnoc) has signed a partnership framework agreement (PFA) with China’s Wanhua Chemical Group Co to explore opportunities in the UAE’s downstream sector – with a focus on Ruwais in Abu Dhabi and Yantai, Shadong in China – and a shipping joint venture agreement that builds on the 10-year liquefied petroleum gas supply contract signed between both entities in November 2018 in Shanghai, with the total value of their collaboration estimated at $12bn (AED44bn). The agreements were signed by UAE Minister of State and Adnoc Group’s chief executive officer, Dr Sultan Ahmed Al Jaber, and Wanhua Chemical’s chairman, Zengtai Liao. The JV contractual agreement will see Adnoc Logistics and Services establish an LPG shipping joint venture with Wanhua Chemical. Also included in the JV is the operation of two very-large gas carrier (VLGC) vehicles.
Meanwhile, the PFA will see Adnoc and Wanhua explore and develop JV opportunities in the UAE and China – the Emirati component of the collaboration will focus on the production of downstream derivatives – including polyurethanes value chain chemicals – at Adnoc’s Ruwais integrated refining and petrochemicals complex.

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