The Abu Dhabi National Oil Company (Adnoc) has said it has signed a three-year agreement with Lotte Chemical Titan, one of the largest polyolefin producers in southeast Asia, to sell up to 1 million tonnes of naphtha annually.

Lotte announced in a stock exchange filing that the contract runs from 1 January, 2018 to December 31, 2020.

Pricing of the supplies will be based on the market price of the commodity during the loading month. The estimated supply quantity is between 600,000 tonnes and 1 million tonnes a-year.

“With this agreement we are implementing a new approach toward our sales of naphtha,” said Abdulla Salem al-Dhaheri, Adnoc’s director for marketing, sales and trading has told Reuters.

“Previously we have sold the product on shorter-term, one-year contracts. By switching to a three-year contract we are capturing long-term market access and securing offtake,” Al-Dhaeri said of the new deal with the Malaysian private downstream company.

Adnoc is a major feedstock supplier of naphtha to Lotte and had previously supplied the commodity in a one-year contract. Adnoc produces over 12 million tonnes of naphtha annually.