Dubai: The Abu Dhabi National Oil Company (ADNOC) today signed an three years agreement with Lotte Chemical Titan (LCT), one of the largest polyolefin producers in South East Asia, for the sale of up to one million tonnes annually of naphtha to the Malaysian petrochemicals’ company.
The long-term agreement, which builds upon the companies’ two decades long business partnership, was signed at ADNOC’s Corporate Headquarters by Abdulla Salem Al Dhaheri, Director, Marketing, Sales and Trading, at ADNOC, and Lee Dong Woo, President and CEO of LCT.
Al Dhaheri said: “With this agreement we are implementing a new approach toward our sales of naphtha. 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. It is another example of how ADNOC is committed to mutually beneficial partnerships that create sustainable value for everyone involved.”
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. The naphtha is converted to olefins and then further converted to polyolefin resins. The products produced end up in everyday applications ranging from automobiles, durable goods, plastic detergent and milk bottles and food packaging.
Lee said: “Demand for petrochemicals in South East Asia is expanding steadily and this three-year agreement with ADNOC will ensure security of naphtha supply, enabling us to expand and diversify our product portfolio and enhance our competitiveness.”