Petrotahlil :Abu Dhabi National Oil Co. said Tuesday it signed an agreement with China's Rongsheng Petrochemicals Co. to explore local and international opportunities as the UAE's national oil producer looks to bolster its presence in Asia.
Both companies will look into opportunities for ADNOC's sale of refined products to Rongsheng, downstream investments in both China and the UAE and ADNOC's supply and delivery of LNG to the Chinese company, ADNOC said in a statement.
"This framework agreement builds on the existing crude oil supply relationship between ADNOC and Rongsheng, which we are keen to enhance," ADNOC CEO Sultan al Jaber said in the statement. "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."
Under the agreement, ADNOC may boost the volume and variety of refined product sales to Rongsheng, and explore the possibility of ADNOC becoming an active participant in the Chinese company's refinery and petrochemical project opportunities, including in Rongsheng's downstream complex.
In return, Rongsheng will look into potential investments in ADNOC's downstream projects in the industrial hub of Ruwais such as its gasoline aromatics plant. ADNOC will also potentially supply and deliver LNG to Rongsheng's facilities in China.
"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 of crude, has adequate supplies of feedstock," Li Shuirong, chairman of Rongsheng Group, said in the statement.
ADNOC plans to invest $45 billion with partners to expand its refining and petrochemical production in Ruwais. The company pumps most of the UAE's oil production of around 3 million b/d. It plans to boost its oil production capacity to 4 million b/d by 2020 and 5 million b/d by 2030.
Follow us on twitter @petrotahlil