Wanhua will buy up to 1 million metric tonnes of LPG per annum under the new agreement.
Abu Dhabi National Oil Company (ADNOC) has announced a new long-term liquefied petroleum gas (LPG) sales agreement with Wanhua. The Chemical Group of China owns the world’s most significant LPG underground cavern storage.
The sides signed a contract for 10 years. Wanhua will acquire up to 1 million metric tonnes of LPG over a year.
State news agency WAM reports that the agreement depicts a significant milestone in the expanding cooperation between ADNOC and its partners and customers in China.
ADNOC produces approximately 10,500,000 metric tonnes per year of LPG. The amount is sold both locally in the UAE and internationally.
“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”, Kou Guangwu, executive vice president of Wanhua Chemical Group announced.
Wanhua’s main feedstock is LPG. Thus, its consumption demand will expectedly grow up to 6 million tons per annum by 2021.