Abu Dhabi National Oil Company (Adnoc) said yesterday that it was ramping up production of high-grade polymer products to meet demand from China’s car industry as well as the country’s investment in gas and electricity infrastructure.
“As we look toward smart growth across our businesses, we see China and the wider Asia region as major opportunities for downstream growth,” said Sultan Al Jaber, the group chief executive of Adnoc.
“Global economic expansion is shifting from West to East and Adnoc is ideally positioned geographically to tap markets, which, by 2040, will account for almost two-thirds of the world’s GDP.”
Adnoc plans to boost its petrochemical capacity to 11.4 million tonnes by 2025 from 4.5 million tonnes last year.
Mr Al Jaber made the comments during a visit to Shanghai where he was touring the Asia north sales and marketing head office and compound manufacturing plant of Borouge, a joint venture between Adnoc and Austria’s Borealis.
The plant produces up to 90,000 tonnes of value-added compounds a year for the Chinese automotive industry.
The plan to ramp up production comes amid increasing ties between Adnoc and China’s hydrocarbon industry. Earlier this year, Adnoc finalised onshore oil concession partnership agreements with the China National Petroleum Company and CEFC China Energy Company Limited.
Demand in China and Asia for petrochemicals and plastics, including lightweight automotive components, essential utility piping and cable insulation, is forecast to double by 2040, according to Adnoc.
The collapse in oil prices from mid-2014 hit the worldwide hydrocarbon industry hard and gave renewed impetus for reform, especially at the Arabian Gulf’s state oil companies. That’s made them more focused on eking out profits through high-value products such as high-grade polymer products.
“We are committed to ensuring security of oil supply in Asia, where demand for energy is growing, and we are responding to the accelerated need for higher value products throughout the region by focusing on petrochemical expansion,” Mr Al Jaber said. “Across our businesses, we will seek out partners who can best complement our resources, capabilities and strengths with technology, know-how and market access.”
Mr Jaber, who is also a Minister of State, will be attending a summit next week in Beijing to discuss China’s Silk Road infrastructure projects to link Asia, Africa and Europe.
mkassem@thenational.ae
Follow The National's Business section on Twitter
