ADNOC has achieved another significant milestone in its ambitious chemicals growth strategy by agreeing to acquire a 35 percent equity stake in ExxonMobil’s proposed low-carbon hydrogen and ammonia production facility in Baytown, Texas, USA. This acquisition supports ADNOC’s vision to establish a leading chemicals platform that addresses the rising demand for lower-carbon petrochemicals, ammonia, and hydrogen, while contributing to global decarbonisation efforts. The strategy emphasises both domestic expansion and international growth, positioning ADNOC to futureproof its business and unlock new revenue streams.
The planned acquisition of OCI’s majority shareholding (50 percent + 1 stake) in Fertiglobe is nearing completion, with the transaction 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 stake in Fertiglobe.
An ADNOC spokesperson commented, “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.”
ADNOC also holds a 54% majority stake in Borouge plc, a leading polyolefins producer providing innovative polymer solutions to over 50 countries across Asia, the Middle East, and Africa. In 2023, Borouge achieved sales of over 5 million tonnes, maintaining a premium over benchmark prices for polyethylene and polypropylene products.
Borouge is advancing its $6.2 billion Borouge 4 expansion project, which will create the world’s largest single-site polyolefin complex, increasing the company’s capacity to 6.4 million tonnes per year. This expansion aligns with ADNOC’s commitment to meeting future demand while promoting sustainable growth and profitability in the petrochemical sector.
Additionally, Borouge, in collaboration with ADNOC and Borealis, has signed a Project Collaboration Agreement with Wanhua Chemical and its subsidiary, Wanrong New Materials (Fujian), to explore a greenfield project in China. The proposed complex is set to produce 1.6 million tonnes per annum of high-quality polyolefins, strengthening Borouge’s position in the rapidly growing Asian market and supporting ADNOC’s broader regional growth ambitions.
TA’ZIZ, a chemicals and industrial ecosystem under development in Al Ruwais Industrial City, Abu Dhabi, is central to ADNOC’s chemicals growth strategy. TA’ZIZ will introduce new chemical products in the UAE, reducing reliance on imports and creating opportunities for local businesses. It is a key component of ADNOC’s low-carbon agenda, as demonstrated by its partnership with Fertiglobe to develop a 1 million tonnes per annum low-carbon ammonia project in Abu Dhabi.
ADNOC is further expanding internationally through targeted mergers and acquisitions. The company holds a 24.9 percent stake in OMV and a 25 percent stake in Borealis AG, with OMV holding the remaining 75 percent of Borealis. As announced in July last year, ADNOC and OMV AG are in formal negotiations to merge their existing shareholdings in Borouge plc and Borealis AG. Borealis, headquartered in Vienna, specialises in polyolefin solutions and recycling.
Through these strategic initiatives, ADNOC continues to strengthen its position as a global leader in the chemicals industry, driving growth and supporting the transition to a more sustainable energy future.
For more information visit www.adnoc.ae
