ADNOC wins Malaysia naphtha contract

Abu Dhabi National Oil Company (ADNOC) has entered into a three-year naphtha supply deal with Malaysia’s Lotte Chemical Titan, the Abu Dhabi NOC announced on Tuesday.

The deal will cover as much as 1 million tpy of naphtha. ADNOC produces more than 12 million tpy.

“With this agreement we are implementing a new approach toward our sales of naphtha,” Abdulla Salem Al Dhaheri, director of marketing, sales and trading at ADNOC said in a statement.

“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. It is another example of how ADNOC is committed to mutually beneficial partnerships that create sustainable value for everyone involved.”

Lotte Chemical is a major regional polyolefin producer. Its president and CEO, Lee Dong Woo, also commented on the deal: “Demand for petrochemicals in South East Asia is expanding steadily and this three-year agreement with ADNOC will ensure security of naphtha supply, enabling us to expand and diversify our product portfolio and diversify our product portfolio.”