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ADNOC signs with Morocco’s OCP for sulphur supply

December 28, 2017 - Pipeline Oil & Gas Magazine

The Abu Dhabi National Oil Company (ADNOC) said it signed a long-term sales agreement with Morocco’s fertiliser group OCP for the supply of sulphur.

Under the agreement, ADNOC will steadily supply granulated sulphur OCP until 2025. The two parties agreed to consider a gradual increase of the contracted annual volumes. ADNOC exported more than 2 million metric tons of granulated sulphur to Morocco in 2016.

As a by-product of its sour gas operations, ADNOC and partners produce more than 6 million tons of sulphur annually, exporting it to customers from its sulphur handling facilities in Ruwais, it said.

ADNOC expects the amount of sulphur available for export to increase over the next decade as the group and its partners bring new sour gas projects on line, as part of its plans to achieve gas self-sufficiency by 2030.

Abdulla Salem Al Dhaheri, marketing, sales and trading director at ADNOC, said: “This landmark agreement, which is unique in the sulphur industry, strengthens ADNOC’s position as one of the world’s largest exporters of sulphur. It will reinforce the sustainable supply of sulphur to Morocco and enhance our ability to achieve positive margins.”

Significant synergies exist between ADNOC and OCP, allowing the two companies to explore various opportunities for a larger cooperation.

Mustapha El Ouafi, managing director at OCP, said: “Since 2008, OCP has initiated the largest investment program in the fertiliser industry with the objective of doubling its mining capacity and tripling its fertiliser capacity. Our ambitious program will see OCP further strengthen its position as the world’s largest fertiliser producer and a leading player in the agribusiness value chain. As such, we are committed to further developing a reliable and strategic partnership with ADNOC.”