ADNOC has announced its ambitious chemicals growth strategy with an agreement to acquire a 35% stake in ExxonMobil's proposed low-carbon hydrogen and ammonia production facility in Baytown, Texas, USA.

According To Amac News: ADNOC's chemical growth strategy aims to create a world-leading chemicals platform to meet growing demand for low-carbon petrochemicals, ammonia and hydrogen, while supporting global decarburization efforts, ADNOC's announcement said.
The strategy focuses on both domestic and international growth for ADNOC's forward-looking business and unlocking new sources of revenue, according to the announcement.
The planned acquisition of OCI's 50% + 1 stake in Fertiglobe is progressing well and the transaction is in its final stages before completion. The deal is expected to close in the fourth quarter of 2024.
ADNOC and OCI signed a purchase and sale agreement in December 2023 under which ADNOC will acquire OCI's entire majority stake in Fertiglobe upon successful closing of the transaction.
ADNOC also holds a majority 54% stake in Borouge plc, a leading producer of polyolefin and providing innovative polymer solutions to customers in more than 50 countries across Asia, the Middle East and Africa.
In 2023, Borouge achieved sales of more than 5 million tonnes, outperforming its benchmark products, polyethylene and polypropylene.
Borouge is progressing with the development of Borouge 4, a $6.2 billion development project that will create the world's largest single-site polyolefin complex, increasing the company's capacity to 6.4 million tons per year.
This development supports ADNOC's commitment to meet future demand while promoting sustainable and profitable growth in the petrochemical sector.
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 green project in China.
This proposed specialized polyolefin complex is supposed to produce 1.6 million tons of high quality polyolefin annually. This strategic initiative strengthens Borouge's position in the fast-growing Asian market and supports ADNOC's broader growth ambitions in the region.
TA'ZIZ, a developing chemical and industrial ecosystem in Al Ruwais Industrial City, Abu Dhabi, will also play a key role in ADNOC's chemicals growth strategy.
TA'ZIZ will produce new chemical products for the first time in the UAE, which will reduce dependence on imports and create opportunities for local businesses.
This is critical in advancing ADNOC's low-carbon agenda, as evidenced by its partnership with Fertiglobe to develop a 1 million tonnes per annum low-carbon ammonia project in Abu Dhabi.
ADNOC also expands internationally through targeted strategic mergers and acquisitions. ADNOC owns 24.9% of OMV and 25% of Borealis AG, with OMV holding the remaining 75% in Borealis.
ADNOC and OMV AG are in formal negotiations to merge ADNOC and OMV's existing shares in Borouge plc and Borealis AG, which is headquartered in Vienna and specializes in polyolefin solutions and recycling.