Adnoc and Taqa have signed an agreement to build utility infrastructure for the Ta’ziz downstream industrial zone in Ruwais.
The companies will jointly develop the power, steam, cooling, demineralised water and wastewater services to enable various chemical projects to be undertaken at Ta’ziz, a joint venture between Adnoc and Taqa’s parent company, ADQ.
International and local investors have been invited to participate in the development of projects at the site, which will include a chemicals zone and a light industrial zone housing companies using chemicals produced in the area.
“We are well placed to further strengthen our position as a world-scale chemical and industrial hub and top destination for foreign direct investment, leveraging technology to further grow the UAE’s advanced manufacturing base,” said Khaleefa Al Mheiri, acting chief executive at Ta’ziz.
Adnoc and ADQ announced plans to collaborate on projects worth $5 billion at the Ruwais Derivatives Park in November last year.
Ta’ziz will invest in chemical projects worth $3bn while $2bn is set to be spent on the development of a port and infrastructure at Ruwais.
Adnoc and ADQ announced the formation of the venture in July as part of plans to establish anchor chemical projects and attract investors to the industrial hub in the emirate’s Al Dhafra region.
They identified chemical compounds that can be used in water treatment, metallurgy, agriculture, pharmaceuticals, adhesives and vehicles for key projects in Ruwais.
Among some of the compounds that are expected to be manufactured after the completion of feasibility studies are chlor-alkali, ethylene dichloride, maleic anhydride, methanol, ammonia, isopropyl alcohol and elastomers.
The total project investment could exceed $3bn, with most chemicals set to be manufactured in the UAE for the first time.
Ta’ziz looks to promote the development of manufacturing and supply chain activities in Ruwais.
Development work at the site has “made significant progress” since the joint venture was announced in November last year, the companies said.
Land and marine surveys have been completed and the venture has received "considerable interest" from local and international investors. Agreements for the development of the first phase of the project are "near finalisation", the companies said.
Geotechnical and topographical surveys, a marine bathymetric survey and health, safety and environment impact assessments for the site have been completed.
The surveys will help to prepare civil engineering works for the construction, dredging, and development of the new port.
Ta'ziz has awarded tenders for front-end engineering design of seven chemical derivative projects. Final investment decisions and the award of engineering, procurement and construction contracts are set to take place next year.
Adnoc invited international oil companies and financial institutions in 2018 to invest about $45bn to develop its downstream sector.