The Ruwais derivatives complex is being operated by TA’ZIZ, ADNOC’s 60:40 joint venture (JV) with Abu Dhabi’s industrial holding company ADQ.
Comprising of three zones, phase one of the project involves constructing production plants to manufacture a number of chemicals at global scale, with opportunities for additional investors and partners to participate. Operations are expected to begin in 2025.
The total investment in the first phase of TA’ZIZ will be in excess of $5 billion, with most of the chemicals produced in the UAE for the first time.
Agreements and contracts
In January 2023, Ta’ziz signed a shareholder agreement with Fertiglobe, a strategic partnership between ADNOC and OCI Company, South Korea’s GS Energy Corp, and Japan’s Mitsui & Co to develop a 1 million tonnes per annum low-carbon ammonia production facility at the TA’ZIZ Industrial Chemicals Zone in Abu Dhabi.
A contract for the initial pre-front-end engineering and design work on the plant was awarded to UK contractor Wood in May 2021.
Last year, India’s Reliance Industries and TA’ZIZ entered into a formal shareholders’ agreement to construct and operate a chlor-alkali, ethylene dichloride and polyvinyl chloride production facility, with a total investment of over $2 billion.
It followed the December’s investment agreements signed between TA’ZIZ and eight UAE-based investors, who agreed to invest up to a 20% stake in a portfolio of projects worth $4 billion the Industrial Chemicals Zone. The deal marked the first domestic public-private partnership in Abu Dhabi’s downstream and petrochemicals sector.
Current progress
TA’ZIZ said its plans continue to advance at pace, with site preparation underway for the development of a world-scale ethylene dichloride, chlor-alkali and PVC facility, and a world-scale methanol facility.
Oil and gas companies worldwide have been investing heavily in the production of petrochemicals, used in everything from plastics to clothing.
Petrochemicals are set to account for more than a third of the growth in world oil demand to 2030, and nearly half the growth to 2050, adding about 7 million bpd by the end of this decade, according to the International Energy Agency.
