ADNOC Group has merged its downstream unit with its trading arm, creating the Downstream Industry, Marketing & Trading Directorate.
When revealing the news, ADNOC said that the new unit would be “a critical enabler of the company’s goal to responsibly deliver the energy and energy products that the world needs, particularly in its core Asian market, where demand for refined and petrochemical products are set to grow over the next 10 years.”
“The decision to integrate ADNOC’s existing Downstream & Industry Directorate and Marketing, Supply & Trading Directorate to create a new Downstream Industry, Marketing & Trading Directorate, effective 17 January 2021, is in tandem with the company’s June 2018 plans to invest $45 billion alongside partners, over five years, to become a leading global downstream player, enabling the company to further stretch the value of every barrel it produces to the benefit of ADNOC, its partners and the UAE,” said Martin Menachery, editor of our sister publication, Refining & Petrochemicals Middle East.
Among other initiatives, ADNOC and ADQ aim to attract more than $5 billion worth of investments into petrochemical projects through their joint ventre TA’ZIZ.
“This key initiative will empower ADNOC to facilitate more in-country value activities and to accelerate UAE’s post-Covid-19 economic growth,” Menachery added. “From the global perspective, active involvement in Asian market is very important for the company since the demand for refined and petrochemical products is forecasted to grow exponentially in the region, over the next ten years. The new directorate will have more resources in place to fulfil this need through greater value chain optimisation.”
“As ADNOC is planning to explore the potential for hydrogen and other new fuels as part of its initiative to cut its carbon intensity by another 25% in the next 10 years, the new Downstream Industry, Marketing & Trading Directorate can become a key enabler in the company’s ambition to capitalise on the emerging global market for hydrogen,” he said.