Page 15 - DMEA Week 05 2021

DMEA NEWS IN BRIEF DMEA

Sipchem starts scheduled (UFG) plans to resume LNG exports in the company created to hold ADNOC’s
51% stake in Abu Dhabi Property Leasing
the first quarter 2021 following the exit
turnaround of Spain’s Naturgy from the joint venture Holding Company (ADPLHC), for $900mn.
managing the facility. As part of a deal
ADPLHC was created to leverage rental
Private-sector Saudi Arabia-based inked in December 2020, Naturgy has income streams from select ADNOC real
petrochemical producer Sahara been released from its 3.5bn cubic metre estate assets under a 24-year master lease
International Petrochemical (Sipchem) annual gas procurement contract to supply agreement.
has announced a scheduled turnaround at its combined cycle gas turbines in Spain Following the completion of the
its polymers plant, International Polymers in favour of Italy’s Eni. The Damietta transaction, ADNOC will hold 69% and
(IPC) and its ethyl acetate plant, Sipchem facility has a 5mn tonne per year (tpy) ADPF 31% of ADEREC, whilst Apollo and
Chemicals (SCC). capacity. Upon completion of the deal, the its subsidiaries will continue to directly hold
The turnaround at IPC began on 1 shareholder structure of Damietta LNG 49% of ADPLHC.
February and is expected to last for six days. owner SEGAS will be Eni (50%), as well ADNOC said it will maintain full
IPC produces 200,000 t/yr of polypropylene as state-owned EGAS (40%) and Egyptian ownership and control over the select real
(PP) and low-density polyethylene (LDPE) General Petroleum Company (10%). estate and social infrastructure assets, as
each. The resumption of operations at the well as responsibility for all operations and
The turnaround at SCC, which is Damietta plant nearly 10 years after they maintenance.
conducted on its 100,000 t/yr ethyl/butyl came to a halt in 2012 due to natural gas Dr Sultan Al Jaber (pictured above),
acetate swing unit, also began on 1 February supply shortages is partly due to surging UAE Minister of Industry and Advanced
and is expected to last for 16 days. LNG prices on world markets creating Technology and ADNOC Group CEO, said:
demand for exports. Cargo shipments “We are delighted to once again partner
from Egypt’s only other LNG plant at with the Abu Dhabi Pension Fund, the
Gasoline sales in Turkey Idku, operated by Royal Dutch Shell, have custodian and long-term investor of the
UAE’s citizens savings. This innovative
skyrocketed. A total of seven cargoes have
decline 3% in 2020 been shipped from the Idku plant since the partnership reinforces ADNOC’s ability to
unlock and drive incremental value from
beginning of January compared with 17
Gasoline sales in Turkey declined by 3.2% in cargoes shipped during the whole of the our unique energy infrastructure and real
2020 to 3.01mn cubic metres, according to fourth quarter 2020, with take-off destined estate asset base, while simultaneously
trading group PETDER. mostly to satisfy the energy-hungry markets creating attractive opportunities for the
Coronavirus (COVID-19) pandemic of Turkey, India and China. long-term financial well-being of the UAE.
curbs restricted vehicle use during the year, “The creation of our real estate
cutting gasoline consumption. investment partnership with Apollo last
In the early months of 2020, Turkey Abu Dhabi Pension Fund year enabled ADNOC to monetise its
introduced occasional bans on intercity non-oil and gas strategic infrastructure
travel to stop the spread of the virus. The inks $900m real estate deal assets and reinvest the proceeds into our
government has been imposing weeknight core business to deliver further growth. The
curfews as well as a full weekend lockdown with ADNOC partnership structure continues to ensure
since December. that ADNOC maintains full ownership and
In the final month of last year, gasoline Abu Dhabi National Oil Company control over our real estate assets, while
consumption dropped nearly 20% y/y to (ADNOC) on February 2 announced it further strengthening our balance sheet and
204,000 cubic metres, data from PETDER has completed a real estate investment allowing for greater capital flexibility.”
also showed. partnership with Abu Dhabi Pension Fund Jassim Buatabh, chairman of the Abu
Diesel sales, on the other hand, dropped (ADPF). Dhabi Pension Fund, added: “We are
only 0.3% in 2020 to 29.6mn cubic metres, The transaction is ADPF’s third pleased to expand our partnership with
while the decline was 1.2% y/y to 2.44mn successive energy infrastructure and real ADNOC, one of the most important
cubic metres in December. estate asset partnership with ADNOC and national companies that contribute to
PETDER also reported an 8.6% decline in marks ADPF’s largest single transaction boosting the economic growth in the
autogas (automotive LPG) sales to 2.98mn with ADNOC to date. emirate of Abu Dhabi. This agreement
tonnes in the 2020. Sales of this product The ADPF partnership follows the aligns with the Fund’s investment
plunged more than 22% y/y in December to announcement by ADNOC in September strategy, aimed at investing in high-
207,000 tonnes. that it had entered into a long-term strategic quality diversified portfolios to achieve
investment with accounts and entities the maximum possible value,” said Jassim
owned and/or advised by Apollo Global Buatabh.
Egypt’s second LNG plant Management and its subsidiaries, one of
the world’s largest alternative investment
expected to resume managers, and a group of institutional
investors, for an underlying real estate
production in Q1 2021 portfolio valued at $5.5bn.
Under the terms of the agreement, ADPF
The operator of Egypt’s Damietta will acquire a 31% holding in Abu Dhabi
liquefaction plant Union Ferosa Gas Energy Real Estate Company (ADEREC),

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