Adnoc to bet on petrochemicals

Abu Dhabi National Oil Company (Adnoc) aims to more than double its petrochemicals output over the next nine years, its CEO said on Monday.

According to Sultan Ahmed Al Jaber, the Abu Dhabi-based entity will raise petrochemicals production from 4.5 million tonnes to 11.4 million tonnes per year by 2025. “To achieve this we will seamlessly integrate our refining and petrochemical businesses and exploit the full portfolio of derivatives from naphtha. In doing so, we will maximise value and maintain strong margins,” Al Jaber was quoted as saying.

Citing growing demand for consumer goods in Asia, he said an emphasis on petrochemicals expansion would present an “unprecedented market opportunity.” Asian markets are important export destinations for Polyethylene from the Middle East, led by China, Singapore and India, and the continent is expected to account for 62% of global demand by 2025.

Al Jaber’s statements were echoed by Saudi Aramco downstream head Abdulaziz Al Judaimi. Speaking at the same event in Dubai, he said Saudi Arabia was targeting an increase in petrochemicals production to 34 million tonnes per year by 2030, up from some 12 million tonnes at present.