Abu Dhabi National Oil Company (Adnoc) is targeting rapid growth in demand for its high-grade polymer products from China’s automotive industry and the country’s investment in gas and electricity infrastructure.
Adnoc said in a statement on Thursday that it is focused on market expansion in China and Asia, where demand for petrochemicals and plastics, including lightweight automotive components, essential utility piping and cable insulation, is forecast to double by 2040.
In response to Asia’s increasing demand for higher value products, the company will ramp up its petrochemical capacity from 4.5 million tons per annum (mtpa) in 2016 to 11.4 mtpa by 2025.
Dr Sultan Ahmad Al Jaber, UAE Minister of State and Group CEO of Adnoc said: “As we look toward smart growth across our businesses, we see China and the wider Asia region as major opportunities for downstream growth. 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 (gross domestic product).”
Al Jaber made his comments during a visit to Shanghai, where he toured the Asia North Sales and Marketing head office and Compound Manufacturing Plant, of Borouge, a joint venture between Adnoc and Borealis. The plant produces up to 90,000 tonnes of value added compounds per annum for China’s automotive industry.
Since opening its Chinese operations in 2009, Borouge has achieved a fourfold increase in trading volume of its products in Asia. China is Borouge’s largest export customer in Asia, accounting for 1.2 million tons per year of polyolefins, equal to one third of its sales worldwide.
Adnoc is also strengthening its relationship with Chinese companies in recent times. Earlier this year it finalised oil concession partnership agreements with the China National Petroleum Company and CEFC China Energy Company Limited.