ADNOC (Abu Dhabi National Oil Company) and Abu Dhabi National Energy Company (TAQA), have signed a 27-year Utilities Purchase Agreement to supply critical utilities to the TA’ZIZ Industrial Chemicals Zone in Ruwais Industrial City, Abu Dhabi.
The 27-year agreement covers both the construction of the utilities facilities and the long-term offtake of services, ensuring reliable and uninterrupted supply throughout the project’s lifecycle.
Under the agreement, ADNOC and TAQA will jointly develop a central utilities project encompassing electricity grid connectivity, steam generation, process cooling, and comprehensive water and wastewater services to support TA’ZIZ’s chemicals and transition-fuels initiatives.
TA’ZIZ, a joint venture between ADNOC and ADQ, will establish and own a dedicated service management company that will act as the sole offtaker of the utilities, ensuring a stable and efficient operating framework for industrial activity within the TA’ZIZ Industrial Chemicals Zone.
TA’ZIZ is set to accelerate the UAE’s industrial diversification and is set to produce 4.7 million tonnes per annum (MTPA) commencing in 2028. This will include methanol, low-carbon ammonia, polyvinyl chloride (PVC), ethylene dichloride (EDC), vinyl chloride monomer (VCM) and caustic soda.
The deal marks a significant milestone in the development of the TA’ZIZ ecosystem. TAQA’s Generation business continues to strengthen its regional footprint through several major developments, including the 1-gigawatt Al Dhafra Gas Turbine project in the UAE, as well as 3.6 GW of new high-efficiency power plants in Saudi Arabia, Rumah 2 IPP and Al Nairyah 2 IPP, being developed in partnership with JERA and AlBawani.
Farid Al Awlaqi CEO – TAQA Generation
“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 together are developing a world-class facility in Ruwais.”
Mashal Al-Kindi, Chief Executive Officer of TA’ZIZ, said that, “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, providing industry leaders with the stable infrastructure essential for world scale chemicals and transition fuels manufacturing.”
