Adnoc Refining, joint venture company between Adnoc, Eni and OMV, has signed an agreement to sell its waste management operations in Ruwais to a group of investors.
The consortium, made up of Abu Dhabi's holding company ADQ, Veolia and Saudi holding company Vision Invest, will operate two waste management plants that sustainably treat and dispose of industrial waste generated by Adnoc's extraction and refining processes.
The deal is subject to regulatory approvals, Adnoc said on Thursday.
“This agreement demonstrates Adnoc’s focus on forging strategic partnerships to promote capital efficiency and unlock growth opportunities in Al Ruwais and Abu Dhabi as a leading destination for international investors,” Adnoc Refining chief executive Abdulla Al Messabi said.
The partnership supports the UAE’s industrial growth through the provision of advanced waste management capabilities, and hastens Adnoc's mandate to grow the country's economic base, he said.
Ruwais has been earmarked for a multibillion-dollar expansion that will expand its refining capacity to 1.5 million barrels per day by 2025, from the current 922,000 bpd, making it the largest.
Ruwais is also home to Borouge, the joint venture between Adnoc and Austrian chemicals producer Borealis.
In May, Abu Dhabi Chemicals Derivatives Company, known as Ta’ziz, said Shaheen Chem Holdings Investment would enter its $2 billion joint venture with India's Reliance Industries as a strategic partner.
The proposed venture aims to construct and operate a chlor alkali, ethylene dichloride (EDC) and polyvinyl chloride (PVC) plant. The plant will be built in the Ta’ziz Industrial Chemicals Zone, a collaboration between Adnoc and ADQ, in Ruwais.
Ta’ziz is an industrial services and logistics company that enables and supports growth of the Ruwais Industrial Complex and fulfils Abu Dhabi’s downstream, chemical and petrochemical requirements across industrial sectors.
Ta'ziz Industrial Chemical Zone projects are currently in the design phase and are expected to start operations in 2025.
The chemicals sector is an integral part of the UAE's Operation 300bn, which aims to raise the contribution of the country's industrial sector to its gross domestic product to Dh300bn ($81.68bn) by 2031.
Last year, eight UAE-based investors signed an agreement with Ta’ziz to pick up a 20 per cent stake in a portfolio of projects worth Dh15bn in its industrial chemicals zone in Ruwais.
The team members working across both plants will join the Veolia-led operating company and benefit from the group's know-how in industrial waste management, Adnoc said.
“The consortium truly believes a partnership with Adnoc will be mutually beneficial and generate significant value, supporting Abu Dhabi’s strategic vision of ensuring sustainable development while preserving the environment,” Veolia chief executive Estelle Brachlianoff and Vision Invest chief executive Omar Al-Midani said.