MOSCOW (MRC) -- Abu Dhabi National Oil Co said on Tuesday it had signed a three-year agreement with Lotte Chemical Titan, one of the largest polyolefin producers in southeast Asia, to sell the Malaysian firm up to 1 million tonnes of naphtha annually, reported Reuters.
"With this agreement we are implementing a new approach toward our sales of naphtha," said Abdulla Salem al-Dhaheri, ADNOC's director for marketing, sales and trading.
"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."
ADNOC produces over 12 million tonnes of naphtha annually.
As MRC informed before, Abu Dhabi National Oil Company (Adnoc) is planning to increase its crude refining capacity in UAE by at least 60% and triple its petrochemical production as part of its future growth strategy, its chief executive officer said in Abu Dhabi last week. "This proposed expansion will create a single largest integrated refining and chemical site in the world in Ruwais in the UAE," said then Dr Sultan Ahmad Al Jaber speaking at the Atlantic Council Global Energy Forum. "Once complete we will convert almost 20 per cent of our crude into chemicals, diversifying our range of higher value products and providing a natural hedge to oil price movements." He also said hydrocarbons will continue to play a vital role to meet global energy demand despite increase in the diversity of energy mix.