ADNOC-OMV consortium, Wanhua partner for proposed Chinese polyolefins complex

Borealis AG and Abu Dhabi Polymers Co. Ltd. (Borouge) —shared assets of Abu Dhabi National Oil Co. (ADNOC) and OMV Aktiengesellschaft—have entered an agreement with Wanhua Chemical Group Co. Ltd. subsidiary Wanrong New Materials (Fujian) Co. Ltd. to collaborate on proposed development of a grassroots polyolefins complex in Fuzhou City, Fujian Province, China.

As part of the project cooperation agreement signed on July 23, the partners have agreed to initiate a feasibility study for the new complex that, if completed, would use Borealis’ proprietary advanced Borstar process technology to produce 1.6 million tonnes/year (tpy) of polyethylene and polypropylene specialty products, OMV and Wanhau said in separate releases.

To be owned and operated by a yet-to-be-established 50-50 Sino-foreign joint venture, the planned complex—which would use 100% zero-carbon electricity to power its operations—supports the parties’ ambitions to expand production of and meet increased demand for products well-suited to drive the transition to a circular economy for plastics, as well as aligns with their commitments to sustainability and reducing industrial emissions, the companies said.

In a July 24 filing to regional regulators, Wanhau said the proposed complex would be based on ethane feedstock and capture additional carbon dioxide emissions from its operations via the hydrogen production and polyurethane industry chains.

The companies did not reveal an estimated timeframe for completion of the feasibility study.

OMV holds a 75% majority interest in Borealis, with ADNOC holding the remaining 25% stake. Borouge is owned by ADNOC (54%) and Borealis (36%).

In its annual 2023 report, Wanhau said it completed startup of a series of new units at subsidiary Wanhua Chemical (Fujian) Co. Ltd.’s existing operations in Jiangyin Industrial Concentration Zone, Fuqing, Fuzhou, Fujian Province, including a:

• 400,000-tpy polyvinyl chloride (PVC) plant.
• 250,000-tpy toluene diisocyanates (TDI) plant.
• 360,000 tpy aniline plant.

In addition to its Fujian complex and main operations at Wanhua Chemical Yantai Industrial Park in Jiangyin Industrial Concentration Zone, Fuqing, Yantai, Shandong Province, Wanhua currently operates three other key production complexes in China through the following subsidiaries:

Wanhua Chemical (Ningbo) Co. Ltd.’s operations in Daxie Development Zone, Ningbo, Zhejiang Province.

Wanhua Chemical (Sichuan) Co. Ltd.’s operations in Jinxiang Chemical Industrial Park, Xiang'er Town, Dongpo District, Meishan, Sichuan Province.

Wanhua Chemical (Guangdong) Co. Ltd.’s operations at Gaolan Port Economic Development Zone, Jinwan District, Zhuhai City, Guangdong Province.