Abu Dhabi National Oil Company (ADNOC) has announced a new long-term liquefied petroleum gas (LPG) sales agreement with Wanhua Chemical Group of China.
Under the terms of the 10-year contract, Wanhua will purchase up to 1 million metric tonnes of LPG per annum.
The agreement represents another important milestone in the expanding relationship between ADNOC and its partners and customers in China, state news agency WAM reported.
Abdulla Salem Al Dhaheri, marketing, sales and trading director at ADNOC, said: "Today's signing of another important long-term sales agreement with a major end-user of LPG, further reinforces ADNOC’s position as a major supplier of crude oil and petroleum products to the growing economies of Asia."
ADNOC produces up to 10,500,000 metric tonnes per year of LPG. This is sold both locally in the UAE and internationally.
Kou Guangwu, executive vice president of Wanhua Chemical Group said: "Wanhua is one of the world’s leading chemical companies and the largest user of LPG in China. Through this long term supply agreement, we look forward to strengthening our strategic partnership with ADNOC. We will continue working on potential collaborations between our companies, either in China or in the UAE, to add more value to the ‘One Belt One Road’ project."
LPG is the main feedstock for Wanhua petrochemical units, with consumption demand of up to 6 million tons per annum projected by 2021.
Wanhua owns the world largest LPG underground cavern storage.For all the latest energy and oil 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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