The UAE is estimated to hold the world’s seventh largest gas reserves and, alongside low-carbon intensity production and processing, its gas can help meet today’s energy needs with fewer emissions, including displacing coal for power generation.
ADNOC currently supplies more than two-thirds of the UAE’s industrial sector’s power and, looking ahead, it plans to unlock more of Abu Dhabi’s abundant gas resources to enable UAE gas self-sufficiency and contribute towards meeting growing global gas demand – including doubling export capacity with new LNG facilities in Fujairah.
In the UAE, however, we are not only unlocking gas to realise its role as a transition fuel but also as an important driver of foreign investment.
The increased diversity and reliability of the UAE’s energy mix is a key part of the country’s unique value proposition. It is one of the many reasons industrial investors are attracted to the UAE as a base for their operations.
Our natural gas output also supports industrial diversification and growth in our smart manufacturing sector. For instance, Abu Dhabi’s natural gas is enabling a fast-growing portfolio of petrochemicals products, such as polyolefins and ammonia, across the UAE’s largest industrial sectors, including piping, fertilisers, recyclable packaging, and medical equipment.
Each of these sectors is being driven by the UAE’s national industrial strategy, which is reinforcing the country’s position as an export hub that can help companies to scale and reach new markets by leveraging our competitive advantages.
The chemicals industry is among the priority sectors identified in the National Strategy for Industry and Advanced Technology and represents an essential part of the ‘Make it in the Emirates’ initiative that is inviting industrialists, investors, innovators and entrepreneurs to manufacture products in the UAE and benefit from the country’s value proposition.
TA’ZIZ, the AED14 billion greenfield chemicals joint venture between ADNOC and ADQ, is an example of UAE-based organisations tapping into the national industrial ecosystem. It is leveraging the UAE’s energy infrastructure and raw materials to push production of in-demand chemical products that use natural gas as a feedstock. There are hundreds of similar use cases in sectors including construction, aerospace and pharmaceuticals.
TA’ZIZ has made significant progress and has attracted international and local private sector investor interest. Agreements have been signed with Fertiglobe to produce clean, low-carbon ammonia. The partnership was joined by energy leaders GS Energy and Mitsui from the Republic of Korea and Japan. Ammonia is widely used as an industrial fertiliser in the agricultural sector and is also considered a carrier fuel for hydrogen, which has been identified as a key driver of the energy transition.
TA’ZIZ will be producing low-carbon ammonia at global scale to accommodate the growing demand for low-carbon ammonia in key markets around the world.
In addition, India’s Reliance Industries and UAE company Shaheen have signed an agreement to produce three critical raw materials at a AED7 billion chemicals production facility at the TA’ZIZ Industrial Chemicals Zone. The end-uses for these chemicals include water treatment, textiles as well as infrastructure and consumer goods. The facilities will produce these chemicals for the first time in the UAE, enabling localised supply chains and meeting local and regional demand as well as unlocking opportunities for export internationally.
Localised and sustainable value chains as well as domestic manufacturing will be central themes at this year’s enhanced Smart Manufacturing Zone at ADIPEC. Discussions will also revolve around embracing the benefits of a circular economy, and how to remain resilient amid the uncertainty of global supply chain disruptions.
By promoting dialogue around these important topics, ADIPEC will help to usher in a new era of smart and sustainable manufacturing. An era where the UAE is an engine of global industrial growth and innovation.
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