ADNOC and Abu Dhabi National Energy Company (TAQA) will supply critical utilities to the TA’ZIZ Industrial Chemicals Zone in Ruwais Industrial City, Abu Dhabi, for the period of the next 27 years.
ADNOC and TAQA will jointly develop the central utilities project, which includes the electricity grid connection, steam production, process cooling, and a range of water and wastewater utilities necessary to support TA’ZIZ’s chemicals and transition-fuels projects.
The duration of the agreement includes the offtake of the utilities and construction of the plant.
TA’ZIZ, which is a joint venture between ADNOC and ADQ, will set up and own a service management company that will be the sole offtaker of the utilities.
Chemicals hub to drive growth
The agreement marks a significant milestone for the TA’ZIZ ecosystem, which is set to accelerate the UAE’s industrial diversification. Once operational in 2028, it will produce 4.7 million tonnes per annum (MTPA) of chemicals, including methanol, low-carbon ammonia, polyvinyl chloride (PVC), ethylene dichloride (EDC), vinyl chloride monomer (VCM) and caustic soda.
The utilities project is being developed on a Build-Own-Operate basis by a project company jointly owned by TAQA (60 per cent) and ADNOC (40 per cent). The companies will jointly oversee operations and maintenance (O&M).
The contracted capacity for the utilities platform includes approximately 163 tonnes per hour (tph) of steam; 710 tph of water; 13,850Nm³/h of compressed air; 385 m³/h of wastewater treatment; 73,000 m³/h of sea cooling water; 21,500 m³/h of fresh cooling water and 5,000 m³/h of firewater.
Farid Al Awlaqi, Chief Executive Officer, TAQA’s Generation business, said: “This agreement strengthens TAQA’s role in enabling industrial growth in the UAE by providing reliable and efficient utility infrastructure to service TA’ZIZ chemicals and transition-fuels production.
“Through this long-term partnership with ADNOC, we are supporting the diversification of Abu Dhabi’s economy and investing in strategic and sustainable infrastructure that will contribute to GDP growth. ADNOC and TAQA both have a proven track record in the energy sector and are developing the world-class facility in Ruwais together.”
Mashal Al-Kindi, Chief Executive Officer of TA’ZIZ, added: “This multi-year agreement with TAQA is a pivotal step in advancing TA’ZIZ’s long-term vision, driving sustainable growth and strengthening the UAE’s industrial base. Reliable and efficient utilities remain central to our value proposition.”
TAQA’s Generation business continues to expand its regional portfolio with several major projects, including the 1-gigawatt Al Dhafra Gas Turbine project in the UAE and 3.6 GW new high-efficiency power plants – Rumah 2 IPP and Al Nairyah 2 IPP – in Saudi Arabia, being developed alongside partners JERA and AlBawani.
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