Adnoc and OMV Postpone $600 Billion Abu Dhabi Petrochemical Giant's Listing Plan

PVC main contract rose 400.00 yuan within the day, now quoted at 6252.00 yuan/ton, up 6.84%.

The DCE benzene main contract surged 7% to RMB 8,849 per ton. The styrene main contract also jumped 7% to RMB 10,742 per ton.

On March 23, Zhuan Su Shi Jie learned that Abu Dhabi National Oil Company (ADNOC) and Austria’s OMV Group announced that, due to market volatility triggered by the Middle East conflict, both parties have agreed to postpone the listing of their joint venture petrochemical company, Borouge International Group, to no earlier than next year. ADNOC and OMV announced last Thursday that the formation of Borouge Group International is progressing as planned and is scheduled for completion by the end of this month. Borouge Group International is being established by integrating ADNOC’s Borouge and OMV’s Borealis petrochemical businesses, followed by the subsequent acquisition of Nova Chemicals.

On March 22, according to the China Petrochemical Corporation (Sinopec) Press Office, China’s first fully domestically developed solution-process-based industrial plant for polyolefin elastomer (POE), with an annual capacity of 100,000 tons, has entered the critical integrated commissioning phase at Tianjin Petrochemical. This integrated technology was upgraded and perfected—covering catalysts, process technology, plant equipment, and automatic control systems—based on the successful operation of Sinopec’s first industrial demonstration plant for POE, with an annual capacity of 50,000 tons and fully independent intellectual property rights, at Maoming Petrochemical. Meanwhile, Sinopec is accelerating the construction of a 100,000-ton-per-year POE plant at Zhenhai Refining & Chemical, signifying that China’s domestically developed solution-process POE production technology has entered a comprehensive capacity-expansion phase.

  As of March 20, the domestic PVC market has been experiencing a volatile upward trend, with the price of SG-5 in East China around 5,690 yuan/ton, an increase of 77 yuan/ton from last week. The market is being supported on one hand by the continuous rise in ethylene prices, which has significantly increased the cost of ethylene-based PVC. On the other hand, there is an increasing expectation of overseas PVC production cuts, which presents opportunities for domestic exports. In the short term, with crude oil prices remaining high, support for PVC will continue. However, domestic demand is weak, and the high prices are not being effectively passed on to downstream, indicating that PVC prices are likely to continue in a strong but volatile trend.