Abu Dhabi National Oil Company (Adnoc) on Tuesday signed a sales contract with the Malaysian petrochemical company, Lotte Chemical Titan.
As part of the agreement, Adnoc will be selling up to one million tonnes per year of naphtha to Lotte Chemical Titan over the next three years. With the deal, Adnoc aims to capture long-term market access and increase its share in the global petrochemicals business.
Adnoc produces over 12 million tonnes per annum of naphtha, which can be used as a feedstock to produce a variety of petrochemical-based products, including plastics.
“With this agreement we are implementing a new approach toward our sales of naphtha,” said Abdulla Salem Al Dhaheri, Director, Marketing, Sales and Trading, at Adnoc in a statement.
“Previously we have sold the product on shorter term, one-year contracts. By switching to a three-year contract we are capturing long-term market access and securing offtake.”