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Up to $12 Billion Potential Collaboration between UAE’s ADNOC and Wanhua

FILE PHOTO: Staff are seen at the Panorama Digital Command Center at the ADNOC headquarters in Abu Dhabi, UAE May 12, 2018. REUTERS/Satish Kumar/File Photo
FILE PHOTO: Staff are seen at the Panorama Digital Command Center at the ADNOC headquarters in Abu Dhabi, UAE May 12, 2018. REUTERS/Satish Kumar/File Photo
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Up to $12 Billion Potential Collaboration between UAE’s ADNOC and Wanhua

FILE PHOTO: Staff are seen at the Panorama Digital Command Center at the ADNOC headquarters in Abu Dhabi, UAE May 12, 2018. REUTERS/Satish Kumar/File Photo
FILE PHOTO: Staff are seen at the Panorama Digital Command Center at the ADNOC headquarters in Abu Dhabi, UAE May 12, 2018. REUTERS/Satish Kumar/File Photo

The Abu Dhabi National Oil Company, ADNOC, signed on Tuesday, a Partnership Framework Agreement with Wanhua Chemical Group Co., Ltd.,Wanhua Chemical, to explore the collaborative development of new opportunities in the downstream sector in the United Arab Emirates and China.

ADNOC and Wanhua Chemical also signed a shipping Joint Venture,JV, agreement building on the 10-year LPG supply contract signed in November 2018.

The potential total value of the collaboration between ADNOC and Wanhua is estimated to be up to $12 billion, further solidifying the strong business and investment ties between the companies, but also reflecting the strong partnership across the energy sector between the two countries.

The Agreements with Wanhua Chemical were signed by Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, and Zengtai Liao, Chairman of Wanhua Chemical Group.

Dr. Al Jaber said: "The bilateral nature of our planned joint cooperation into both the UAE and China is unique, as it will allow the combined platforms to benefit from ADNOC’s competitive feedstock availability in Abu Dhabi, as well as capture the promising growth opportunities in China."

Under the terms of the JV Contractual Agreement, ADNOC Logistics and Services, ADNOC L&S, and Wanhua Chemical will establish a LPG Shipping Joint Venture, building on the existing 10-year LPG supply contract, which was signed in Shanghai, China, in November 2018. The JV includes the operation of two VLGC vessels,Very Large Gas Carriers vessels. Both companies will optimize their respective supply programs and maximize value through the operation and management of these vessels. Through the JV, ADNOC will maximize the value of its LPG portfolio.

In an additional Partnership Framework Agreement, ADNOC and Wanhua Chemical have agreed to explore and develop JV opportunities in both the UAE and in China. The UAE JV would be focused on producing downstream derivatives, including polyurethanes value chain chemicals at ADNOC’s integrated refining petrochemicals complex in Ruwais, Abu Dhabi. The China JV would focus on exploring investment opportunities for the development and production of petrochemical and derivative products in Yantai, Shandong Province, China. These JVs will yield increased feedstock supplies from ADNOC to Wanhua and further strengthen the existing long-term relationship between both companies. The opportunities will allow ADNOC and Wanhua Chemicals to combine and leverage their market leadership and expertise in technology, marketing and competitive feedstocks.

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US Labor Market Slows Despite Job Adds in May

Commuters cross Pennsylvania Avenue in Washington, DC, during the morning rush hour. (Roberto Schmidt/AFP/Getty Images)
Commuters cross Pennsylvania Avenue in Washington, DC, during the morning rush hour. (Roberto Schmidt/AFP/Getty Images)
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US Labor Market Slows Despite Job Adds in May

Commuters cross Pennsylvania Avenue in Washington, DC, during the morning rush hour. (Roberto Schmidt/AFP/Getty Images)
Commuters cross Pennsylvania Avenue in Washington, DC, during the morning rush hour. (Roberto Schmidt/AFP/Getty Images)

The United States added 139,000 jobs in May, more than expected but pointing to a labor market that continues to slow.

The employment data released Friday by the Bureau of Labor Statistics exceeded forecasts for about 120,000 payroll gains but marked a decline from the revised 147,000 jobs added in April. The unemployment rate held steady at 4.2%, remaining near historic lows.

Stocks surged at Friday's open, with all three major indexes gaining about 1%.

In return, US government borrowing costs climbed as investors anticipated the Federal Reserve would keep interest rates higher for longer, making it less attractive to hold US debt.

The BLS report showed job losses in the federal government continued to pile up, with that sector shedding 22,000 roles in May alone.

The federal workforce is down by 59,000 since January, largely due to sweeping cuts by the Trump administration and multibillionaire tech executive Elon Musk's Department of Government Efficiency project.

Even as the economy continued to add jobs at a relatively steady clip last month, the report showed other signs of a weakening labor market.

The ratio of employed workers to the total population fell to 59.7%, its lowest since the pandemic.

An alternative measure of unemployment that includes “discouraged” workers, or those who have stopped looking for work, returned to a post-pandemic high of 4.5%.

But President Donald Trump cheered the numbers, posting on his Truth Social platform Friday morning: “AMERICA IS HOT! SIX MONTHS AGO IT WAS COLD AS ICE! BORDER IS CLOSED, PRICES ARE DOWN. WAGES ARE UP!”

Trump had urged Federal Reserve Chairman Jerome Powell to slash interest rates by a full percentage point.

“Too Late' at the Fed is a disaster!” Trump wrote in a post on Truth Social.

In reality, employers added 212,000 jobs in November, unemployment was at 4.1%, the 12-month average of hourly pay gains have softened from nearly 4.2% then to 3.9% in May, and both the labor force participation rate and the employment-to-population ratio were slightly higher.

Only consumer prices have meaningfully cooled, ticking down from an annual inflation rate of 2.7% in November to 2.3% in April, the latest month with available data.

Analysts at Capital Economics called the May jobs report “not as good as it looks.”

Still, they wrote in a note Friday, “it shows that tariffs are having little negative impact” and added that the Federal Reserve is likely to continue holding interest rates steady “while it assesses the effects of policy changes on the economy.”