The agreement was inked on the sidelines of a three-day state visit to China by Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed.

In addition, the parties signed a shipping joint venture agreement building on a 10-year LPG supply contract signed in November 2018, according to the statement.

The potential total value of the collaboration between ADNOC and Wanhua is estimated to be up to $12 billion, the statement read.

Under the shipping joint venture, ADNOC Logistics & Services and Wanhua Chemical will establish a partnership for LPG transportation including the operation of two VLGCs, or Very Large Gas Carriers.

This follows the signing of a relevant MoU in February this year.

The two companies have also agreed to explore and develop joint venture opportunities in both countries, with the UAE partnership focusing on producing downstream derivatives, or those relating to refined oil products.