The Abu Dhabi National oil Company (ADNOC) and Morocco’s OCP Group have signed a long-term sales deal for ADNOC to supply OCP with granulated sulphur, the company announced on Wednesday.
Under the agreement, ADNOC – which is one of the world’s largest exports of sulphur – will supply OCP, which is the world’s largest sulphur importer, until 2025. The two parties agreed to consier a gradual increase of contracted annual volumes.
In 2016, ADNOC exported more than 2 million metric tonnes of granulated sulphur to Morocco.
“This landmark agreement, which is unique in the sulphur industry, strengthens ADNOC’s position as one of the world’s largest exporters of sulphur,” said Abdulla Salem Al Dhaheri, marketing, sales and trading director at ADNOC. “It will reinforce the sustainable supply of sulphur to Morocco and enhance our ability to achieve positive margins.”
Mustapha El Ouafi, managing director at OCP, noted that since 2008, the company has initiated he largest investment programme in the fertilizer industry “with the objective of doubling its mining capacity and tripling its fertilizer capacity.”
Our ambitious program will see OCP further strengthen its position as the world’s largest fertilizer producer and a leading player in the agribusiness value chain,” he added. “As such, we are committed to further developing a reliable and strategic partnership with ADNOC, the world’s largest sulphur exporter.”
As a by-product of its sour gas operations, ADNOC and its partners produce over 6 million tonnes of sulphur annually. The amount of sulphur is expected to increase in the next decade as ADNOC brings new sour gas projects online, part of a larger strategy to achieve gas self-sufficiency by 2030.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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