Abu Dhabi National Oil Company (Adnoc) is creating an LPG shipping joint venture with China’s Wanhua Chemical. The agreement builds on an earlier 10-year LPG supply contract and will include the operation of two very large gas carrier vessels.
The joint venture opportunity will look at downstream derivatives in the UAE including polyurethane value chain chemicals at Adnoc’s refining and chemicals hub at Ruwais.
In China, it will explore opportunities for the development of petrochemicals and derivatives in Yantai, Shandong province.
“Building on our existing cooperation in the LPG space, the shipping JV will see Adnoc capture additional margins and further maximise value across our LPG portfolio,” Adnoc group chief executive and UAE minister of state Dr Sultan Al Jaber said in a statement.
Wanhua is one of the world’s leading producers for methylene diphenyl diisocyanate, often abbreviated as MDI – a key ingredient in the manufacture of high-performance adhesives and synthetic fibres. The company is also a major producer of toluene diisocyanate, abbreviated as TDI, which finds uses in the manufacture of flexible polyurethane foams used as support in car seats and upholstery. The company owns the largest underground storage cavern for LPG with a total capacity of 2.4m cu m as well as adjacent port facilities and berths.