Page 16 - DMEA Week 10 2022

DMEA NEWS IN BRIEF DMEA

government’s efforts to convert a large portion and ammonia plant. a handful of local and regional banks to take
of the country’s commercial fleet to CNG and Last December, Abu Qir Fertilizers selected part in the initial public offering (IPO), the
suggested that Nigeria adopt a similar policy. Al Ahli Capital, the investment banking arm sources said, declining to be named as the
If Nigeria uses more CNG, it will not need of National Bank of Egypt, to act as financial matter is not public.
to import so much gasoline and diesel, he advisor for the International Company ADNOC, which supplies nearly 3% of
declared. for Methanol and Derivatives, with equity global oil demand, declined to comment.
“[We] can learn a little bit from Egypt, participation from Helwan Fertilizers and Al Borealis, which is owned by Austrian refiner
where its commercial vehicles, particularly the Ahli Capital Holding. OMV and Abu Dhabi state fund Mubadala
taxis, are powered by gas,” he was quoted as The paid-in-capital project financing is Investment Company, did not immediately
saying by the Daily Trust. expected to be split 30:70 between auto- respond to a request for comment.
“These are the old Peugeot and Renault financing and bank loans. Global coordinator roles were mandated
cars that are no longer in use in Nigeria and The new methanol plant is to be located to Citi, HSBC, Morgan Stanley and First Abu
other parts of the world, but which have in El Sokhna Port, as part of the Suez Canal Dhabi Bank earlier this year, the sources said.
been converted to use gas and are still being Economic Zone. The company expects that US investment bank Goldman Sachs is also
used because they are well maintained. It is the first phase of the project will involve seeking a role in the syndicate, they added.
high time we borrowed from this. If all our production of 1mn tonnes per year of HSBC and FAB did not immediately
commercial vehicles run on gas, a large chunk methanol and 400,000 tpy of ammonia, all of respond to a request for comment. Goldman
of the demand for petrol and diesel will drop.” which will be destined for export. Sachs, Citi and Morgan Stanley declined to
He went on to say that he did not expect a The company has already obtained initial comment.
switch to CNG to be particularly disruptive to approval from the General Authority for the Borouge is a manufacturer of plastics
the Nigerian economy. Suez Canal Economic Zone to allocate 1.6mn used in cars and food packaging, among
“The mechanics will take less than a week square metres of land for the implementation many things. It employs 3,000 people and has
to learn how to do the conversion and in of the project. It also got the nod from the customers in more than 100 countries across
six months, all commercial vehicles would Ministry of Petroleum and Mineral Resources the Middle East, Asia and Africa, according
have gone through the transition,” he said, to obtain the volumes of natural gas necessary to its website. Its main plant is in Abu Dhabi,
according to the Daily Trust. “This will reduce for production. with a marketing and sales office in Singapore.
the cost of transportation, especially for The company is exploring the option of ADNOC and Borealis said last month they
the masses that patronise public transport making the project a Free Zone because all were considering a potential IPO of Borouge.
systems.” its production will be destined for export, Abu Dhabi’s main equity index has risen
NEWSBASE enabling it to benefit from the customs and about 13% this year amid an IPO boom.
local tax exemptions deriving from Free Zone ADNOC CEO Sultan al-Jaber has overseen
status. a transformation strategy the company
PETROCHEMICALS NEWSBASE embarked on more than four years ago,
building an investment team to monetise
Abu Qir talks to ADNOC, Borealis seek assets and raise funds from international
private equity groups.
TotalEnergies about banks for plastics JV IPO business in Abu Dhabi’s largest IPO to date.
Last year ADNOC listed its drilling
hydrogen and ammonia Abu Dhabi National Oil Company (ADNOC) Fertiglobe, a joint venture between ADNOC
and its Austrian chemicals partner Borealis
and chemical producer OCI, also made its
plant have invited banks to pitch for bookrunner market debut last year, and ADNOC floated
roles in the listing of their plastics joint
shares in its distribution business in 2017.
Abu Qir Fertilizers is in talks with France’s venture Borouge, two sources with knowledge REUTERS
TotalEnergies with a view to co-operating on of the matter told Reuters.
the development of a $2.6bn green hydrogen State-owned ADNOC and Borealis invited

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