ADNOC Handing over on Ambitious Chemicals Growth Technique

ADNOC announced one other necessary milestone in its bold chemical substances roar strategy last week with the agreement to develop a 35% equity stake in ExxonMobils proposed low-carbon hydrogen and ammonia production facility in Baytown, Texas, US.

ADNOCs chemical substances roar strategy aims to fabricate a international-main chemical substances platform to meet rising quiz for decrease-carbon petrochemicals, ammonia and hydrogen whereas supporting international decarbonization efforts. The strategy specializes in both domestic expansion and international roar to futureproof ADNOCs industry and free up unusual earnings sources.

Acquisition of OCIs Fraction in Fertiglobe to Shut in Q4

The deliberate acquisition of OCIs 50% + 1 stake in Fertiglobe is progressing successfully, with the transaction in its last levels before completion. The transaction is anticipated to produce in the fourth quarter of 2024.

ADNOC and OCI signed a Sale and Own Settlement in December 2023, below which ADNOC will develop OCIs entire majority shareholding in Fertiglobe, upon the transactions successful closing.
An ADNOC spokesperson said: The acquisition of OCIs stake in Fertiglobe aligns with our bold chemical substances roar strategy, supporting our plans to put a international platform for sustainable blue ammonia. This would possibly enable Fertiglobe to flee its pursuit of original markets and product alternatives, in particular in the emerging low-carbon alternatives sector. ADNOCs acquisition of OCIs stake in Fertiglobe is progressing successfully with most clearances already received, and the last approvals anticipated to be reached in the arrival months. The acquisition will not be off course to produce in the fourth quarter of 2024.

Borouge Handing over on Growth Mandate

ADNOC also holds a majority 54% stake in Borouge plc (ADX: BOROUGE), a number one producer of polyolefins and providing modern polymer alternatives to customers in over 50 countries at some stage in Asia, the Heart East, and Africa. In 2023, Borouge accomplished sales of over 5 million tonnes and maintained a top rate over benchmark prices for its products, polyethylene and polypropylene.

Borouge is progressing with the improvement of Borouge 4, a $6.2 billion expansion mission that can effect the worlds ultimate single-build polyolefin complex, increasing the companys capacity to 6.4 million tonnes per 365 days. This expansion supports ADNOCs commitment to meet future quiz whereas selling sustainable roar and profitability right via the petrochemical sector.

Additionally, Borouge, in a consortium with ADNOC and Borealis, not too long previously signed a Project Collaboration Settlement with Wanhua Chemical and its subsidiary, Wanrong Unusual Materials (Fujian), to explore a greenfield mission in China. This proposed strong level polyolefins complex is made up our minds to net 1.6 million tonnes per annum of fine quality polyolefins. This strategic initiative reinforces Borouges house in the lickety-split rising Asian market and supports ADNOCs broader roar ambitions in the plot.

TAZIZ Building Underway

TAZIZ, a chemical substances and industrial ecosystem below style in Al Ruwais Industrial City, Abu Dhabi, would possibly possibly also play a key unprejudiced in ADNOCs chemical substances roar strategy. TAZIZ will net unusual chemical products in the UAE for the first time, decreasing reliance on imports and organising alternatives for native businesses. It’s pivotal in advancing ADNOCs low-carbon agenda, evidenced by its partnership with Fertiglobe in organising a 1 million tonnes per annum low-carbon ammonia mission in Abu Dhabi.

Global Growth and Strategic Partnerships

ADNOC is also expanding internationally via focused strategic mergers and acquisitions. ADNOC holds a 24.9% stake in OMV and a 25% stake in Borealis AG, with OMV retaining the last 75% in Borealis. As announced in July last 365 days, ADNOC and OMV AG are in formal negotiations to merge ADNOCs and OMVs existing shareholdings in Borouge plc and Borealis AG, which is headquartered in Vienna and makes a speciality of polyolefin alternatives and recycling.