The Abu Dhabi National Oil Company (Adnoc) has announced signing two new agreements for the sale of a combined amount of up to 1.5 million tonnes per year (mtpa) of naphtha.

Adnoc signed the three-year deals with Idemitsu Kosan of Japan and SCG Chemicals of Thailand. The financial values of the contracts were not provided.

Both sales agreements were signed during visits by Adnoc’s Marketing, Sales and Trading Directorate team to its customers in Japan, South Korea and Thailand.

Adnoc sealed a similar three-year deal with Malaysia’s Lotte Chemical Titan for the sale of up to 1mtpa of naphtha.

ADNOC produces more than 12.5 mtpa of naphtha, which can be used as a feedstock to produce a variety of petrochemical based products, including plastics.

The naphtha is converted to olefins and then further converted to polyolefin resins. The products produced end up in applications including light-weight automotive components, essential utility piping and cable insulation, durable goods, a range of every-day plastics, detergent, CDs, milk bottles and food packaging.

Adnoc is investing in downstream projects to grow its refining capability and expand its petrochemical production three-fold to 14.4 mpta by 2025, as part of its Vision 2030 strategy.

Idemitsu Kosan produces a variety of basic chemicals, including olefins such as ethylene and propylene, and aromatics like benzene, para-xylene and styrene monomer. It is also a supplier of plastics for uses such as CD pressing and circuit boards.

SCG Chemicals manufactures petrochemical products ranging from upstream monomers to downstream polymers including polyethylene, polypropylene, polyvinyl chloride, polystyrene and methyl methacrylate (MMA).