Abu Dhabi: Adnoc on Tuesday announced that it signed a broad framework agreement with China’s Rongsheng Petrochemical to explore domestic and international growth opportunities which will support the delivery of its 2030 smart growth strategy.
The agreement will see both companies explore opportunities in the sale of refined products from Adnoc to Rongsheng, downstream investment opportunities in both China and the UAE, and the supply and delivery of liquefied natural gas (LNG) to Rongsheng.
The agreement was signed by Dr. Sultan Al Jaber, Minister of State and Adnoc group chief executive officer, and Li Shuirong, chairman of Rongsheng Group.
Rongsheng is one of the leading companies in China’s petrochemical and textile industry. In recent years, Rongsheng has been developing both vertically and horizontally across the value chain, investing massively in multiple high-value oil and gas projects.
“This framework agreement builds on the existing crude oil supply relationship between Adnoc and Rongsheng, which we are keen to enhance,” said Al Jaber.
“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,” he added.
“As we continue to successfully deliver our 2030 smart growth strategy, we are committed to working with partners who enable us to unlock and maximise value and help us secure access to new centers of global demand,” Al Jaber said, highlighting Adnoc’s strategy of partnering internationally to help drive its growth.
Under the terms of the framework agreement, Adnoc and Rongsheng will explore opportunities for increasing the volume and variety of refined products sales to Rongsheng as well as Adnoc’s active participation as Rongsheng’s strategic partner in refinery and petrochemical opportunities, including an investment in Rongsheng’s downstream complex.
Rongsheng for their part will also potential investments in Adnoc’s downstream industrial ecosystem in Ruwais, including the proposed Gasoline Aromatics Plant and the potential for Adnoc to supply and deliver LNG for utilisation by Rongsheng within its production complexes in China.