China’s Wanhua Chemical and Abu Dhabi National Oil Company (Adnoc) have agreed to form a shipping joint venture in the LPG sector to explore downstream opportunities in both countries.
Estimated to be worth $12 billion, the JV is expected to explore downstream derivatives in the UAE that includes polyurethane value chain chemicals at Ruwais - Adnoc's refining and chemicals hub. The JV will also look for development of petrochemicals and derivatives in Yantai, Shandong province of China.
The JV is built on an earlier 10-year LPG supply contract between the two companies. In addition, two Very Large Gas Carrier vessels will be used in the operation. The joint venture also includes additional feedstock supplies by Adnoc to Wanhua.
As demand for LPG rises in East Asia, companies like Adnoc are looking at increasing more supplies to the region. Last year, Adnoc signed a 10-year sales agreement with Wanhua for the purchase of up to 1 million tonnes of LPG annually.
The new JV between the 2 companies will leverage Adnoc's polyolefins capabilities with Wanhua's expertise in specialty materials to allow for a broader product range in building and construction, appliances, automotive, electronics and furnishings.
Wanhua Chemical Group presents a session on
‘Balancing Demand & Imports Requirements of LPG in China’ at
CMT’s 14th LPG Trade Summit on 12-13 November, 2019, in Athens.
Contact Huiyan at
huiyan@cmtsp.com.sg or call +65 6346 9113 for more details.
