ADNOC starts new business venture ADNOC Gas

MOSCOW (MRC) -- Abu Dhabi National Oil Co (ADNOC) announced the formation of, ADNOC Gas, effective 1 Jan 2023, a new worldscale gas processing, operations and marketing company, said Upstreamonline.

ADNOC Gas combines the operations, maintenance and marketing of the ADNOC Gas Processing and ADNOC LNG (liquefied natural gas) businesses into one global consolidated business.

The new company will be a key enabler of ADNOC's ambitious strategy for the gas sector, supporting the United Arab Emirates (UAE) gas self-sufficiency, industrial expansion and economic growth; and expanding export capacity to meet growing global demand.

“As Adnoc grows its gas production and processing capacity, the combined scale and capabilities of Adnoc Gas will maximise value and create new opportunities for Adnoc, its partners, (and the United Arab Emirates),” it noted.

Adnoc last year highlighted its intent to proceed with the consolidation of its gas processing and marketing business into Adnoc Gas, which will “serve a wider range of domestic and international customers with an expanding portfolio of gas products”.

Adnoc stated that Adnoc Gas “is expected to unlock significant financial and operational opportunities”.

“The new company will be more agile, better able to respond to changing market demands, and well-positioned to take advantage of strategic opportunities for future growth,” it said.

We remind, ADNOC announced a bold new strategy to progress the world-scale decarbonization of its operations.
The announcement follows the guidance by ADNOC’s Board of Directors in November 2022 to accelerate delivery of its low-carbon growth strategy and the approval of its Net Zero by 2050 ambition. This builds on ADNOC’s strong track record as a leading lower-carbon intensity energy producer, which includes its use of zero carbon grid power, a commitment to zero flaring as part of routine operations and deployment of the region’s first carbon capture project at-scale.

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MOSCOW (MRC) -- Saint-Gobain, through its Chryso business, has completed the acquisition of Matchem in Brazil and entered into exclusive negotiations to acquire IDP Chemicals in Egypt, said the company.

The acquisitions of Matchem and IDP Chemicals will allow Saint-Gobain to strengthen its position in construction chemicals, in particular concrete admixtures which play a key role in the decarbonization of the construction industry.
These two companies are focused on the buoyant building and infrastructure markets in Brazil and Egypt, which should see strong growth for the years to come. Matchem, established in 2011, employs around 50 people across two plants in Brazil and generated revenues of close to EUR 20 M in 2022.

Together with Quartzolit, manufacturer of mortars (tile fixings, wall and floor coatings, waterproofing membranes), TekBond, sealant and adhesive specialist, and the recently acquired GCP Applied Technologies, Matchem will reinforce Saint-Gobain's platform in construction chemicals, a leader on the Brazilian market with 24 industrial sites. IDP Chemicals, licensed by Chryso since 2018, employs 25 people at one plant and is well positioned to serve the dynamic construction market in Egypt. This acquisition should be finalized in 1Q 2023.

We remind, Saint-Gobain has now obtained approvals from all relevant competition authorities for its acquisition of GCP Applied Technologies Inc., a major global player in construction chemicals, announced on December 6, 2021, said the company. The acquisition will close on September 27, 2022. GCP will delist from the New York Stock Exchange.

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MOSCOW (MRC) -- The United Nations Development Programme (UNDP) has partnered with Hindustan Unilever (HUL), a subsidiary of Unilever, to improve plastic circularity in India, said Packaging-gateway.

The partners have launched Inclusive Circular Economy, an initiative focused on the end-to-end management of plastic waste. UNDP and HUL will promote waste segregation at its source and the collection of segregated waste.

They will also develop material recovery facilities (MRFs) that can accept all kinds of plastic waste along the value chain. In addition, the project aims to promote the social inclusion of waste-pickers, locally known as Safai Saathis, in India’s waste management sector.

Inclusive Circular Economy will make government welfare schemes and linkages accessible to 20,000 pickers in cities such as Mumbai, Delhi, Bengaluru, Cuttack and Kolkata. The partnership will increase the capacities of Urban Local Bodies in other cities to adopt the MRF model for plastic and dry waste management.

The project aims to reach 100,000 households to segregate waste materials at their source. HUL CEO and managing director Sanjiv Mehta said: “The partnership between HUL and UNDP is a holistic and replicable model that promotes plastic circularity and collective action.

“The partnership will also promote the social inclusion of the invisible superheroes of our society, Safai Saathis, at scale.” Inclusive Circular Economy builds on UNDP and HUL’s existing partnership under UNDP’s flagship Plastic Waste Management Programme.

UNDP said the project has so far reached out to 100,000 households on source segregation and linked 3,300 Safai Saathis and their families to government welfare schemes.

UNDP India resident representative Shoko Noda said: “The plastic waste management programme promotes an innovative multi-stakeholder model between municipal corporations, corporates, Safai Saathis and people to work together for cleaner and greener cities.

We remind, Reliance Industries Ltd., helmed by billionaire Mukesh Ambani, posted a larger-than-expected quarterly profit as growth in its consumer units offset the weakness in its traditional petrochemicals business. Net income fell 15% to 157.9 billion rupees (USD1.9 billion) in the quarter ended Dec. 31 but was still higher than the average 156.19 billion rupees estimated in a Bloomberg survey. India’s largest company by market value also secured approval of its board to raise as much as 200 billion rupees via bonds.

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MOSCOW (MRC) -- South Korean producer Lotte Chemical is exiting the purified terephthalic acid (PTA) business with the sale of its 75.01% stake in LCPL (LOTTE CHEMICAL Pakistan Ltd), said Koreanpost.

This divestment is part of the company’s medium-term strategy to strengthen its high value-added specialty materials business.

LCPL, which produces 500,000 tonnes/year of PTA at Port Qasim in Karachi, will be sold to Pakistani chemical company Lucky Core Industries (LCI) for Korean won (W) 192.4bn (USD156m) – more than 13 times Lotte Chemical’s acquisition cost in 2009.

The buyer LCI is formerly known as ICI Pakistan, which produces polyester – a derivative product of PTA.

It produces 122,000 tonnes/year of polyester polymer and 135,000 tonnes/year of polyester fibres in Lahore; and 225,000 tonnes/year of soda ash in Khevra, according to ICIS Supply and Demand Database.

In South Korea in July 2020, the company ceased producing PTA at its 600,000 tonne/year plant in Ulsan, and converted it into a facility producing purified isophthalic acid (PIA).

The Ulsan plant’s current PIA capacity is 520,000 tonnes/year.

By 2030, the company is targeting high value-added specialty and eco-friendly material business to account for 60% of its total projected sales of W50tr (USD41bn).

Lotte Chemical plans to become carbon neutral in the same year, with plans to invest W4.4tr over 10 years on hydrogen production, in line with its target of supplying 30% of South Korea’s demand for the clean fuel.

We remind, Since the beginning of September 2022, Lotte Chemical has reduced the load on PP production in Yeosu and Daesan (Yeosu and Daesan Gudang, South Korea) by 20% since the beginning of September 2022. The total PP production capacity in Yeosu and Daesan is 1.23 million tonnes.

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MOSCOW (MRC) -- Turkey’s Sasa Polyester has announced a licensing deal with Honeywell UOP for a 1m tonne/year propylene production plant based on propane dehydrogenation (PDH) technology, said the company.

The agreement also covered technical service and warranty aspects of the USD1.5bn project to be constructed in the Yumurtalik investment area in Turkey’s southern province of Adana, Sasa added, when filing details of the deal with the Istanbul Stock Exchange.

Sasa said that it expected the contribution of the planned investment to its turnover would be USD1.2bn.

The targeted completion date for the plant was the first half of 2026, the company also said.

We remind, Sasa Polyester Sanayi increased the loading of PET production in the city of Adana (Adana, Turkey) up to 100%. Previously, the capacity of this plant with a capacity of 365,000 tonnes of PET per year was reduced in October last year due to low demand.

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