ABU DHABI: ADNOC announced another important milestone in its ambitious chemicals growth strategy last week with the agreement to acquire a 35 percent equity stake in ExxonMobil’s proposed low-carbon hydrogen and ammonia production facility in Baytown, Texas, US.
ADNOC’s chemicals growth strategy aims to build a world-leading chemicals platform to meet rising demand for lower-carbon petrochemicals, ammonia and hydrogen while supporting global decarbonisation efforts. The strategy focuses on both domestic expansion and international growth to futureproof ADNOC’s business and unlock new revenue sources.
The planned acquisition of OCI’s 50 percent + 1 stake in Fertiglobe is progressing well, with the transaction in its final stages before completion. The transaction is expected to conclude in the fourth quarter of 2024.
ADNOC and OCI signed a Sale and Purchase Agreement in December 2023, under which ADNOC will acquire OCI’s entire majority shareholding in Fertiglobe, upon the transaction’s successful closing.
An ADNOC spokesperson said, ‘The acquisition of OCI’s stake in Fertiglobe aligns with our ambitious chemicals growth strategy, supporting our plans to establish a global platform for sustainable blue ammonia. It will enable Fertiglobe to accelerate its pursuit of new markets and product opportunities, particularly in the emerging low-carbon solutions sector. ADNOC’s acquisition of OCI’s stake in Fertiglobe is progressing well with most clearances already obtained, and the remaining approvals expected to be reached in the coming months. The acquisition is on track to conclude in the fourth quarter of 2024.’
ADNOC also holds a majority 54 percent stake in Borouge plc, a leading producer of polyolefins and providing innovative polymer solutions to customers in over 50 countries across Asia, the Middle East and Africa. In 2023, Borouge achieved sales of over 5 million tonnes and maintained a premium over benchmark prices for its products, polyethylene and polypropylene.
Borouge is progressing with the developme
nt of Borouge 4, a US$6.2 billion expansion project that will create the world’s largest single-site polyolefin complex, increasing the company’s capacity to 6.4 million tonnes per year. This expansion supports ADNOC’s commitment to meet future demand while promoting sustainable growth and profitability within the petrochemical sector.
Additionally, Borouge, in a consortium with ADNOC and Borealis, recently signed a Project Collaboration Agreement with Wanhua Chemical and its subsidiary, Wanrong New Materials (Fujian), to explore a greenfield project in China. This proposed specialty polyolefins complex is set to produce 1.6 million tonnes per annum of high-quality polyolefins. This strategic initiative reinforces Borouge’s position in the rapidly growing Asian market and supports ADNOC’s broader growth ambitions in the region.
TA’ZIZ, a chemicals and industrial ecosystem under development in Al Ruwais Industrial City, Abu Dhabi, will also play a key role in ADNOC’s chemicals growth strategy. TA’ZIZ will pr
oduce new chemical products in the UAE for the first time, reducing reliance on imports and creating opportunities for local businesses. It is pivotal in advancing ADNOC’s low-carbon agenda, evidenced by its partnership with Fertiglobe in developing a 1 million tonnes per annum low-carbon ammonia project in Abu Dhabi.
ADNOC is also expanding internationally through targeted strategic mergers and acquisitions. ADNOC holds a 24.9 percent stake in OMV and a 25 percent stake in Borealis AG, with OMV holding the remaining 75 percent in Borealis. As announced in July last year, ADNOC and OMV AG are in formal negotiations to merge ADNOC’s and OMV’s existing shareholdings in Borouge plc and Borealis AG, which is headquartered in Vienna and specialises in polyolefin solutions and recycling.
Source: Emirates News Agency