TA’ZIZ partners to expand Ruwais chemical production capacities

Abu Dhabi Chemicals Derivatives Co. RSC Ltd. (TA’ZIZ)—a joint venture of Abu Dhabi National Oil Co. (ADNOC) and Abu Dhabi Developmental Holding Co. PJSC (ADQ)—has entered a strategic partnership agreement with Alpha Dhabi Holding PJSC to support expanded production of chemicals at TA’ZIZ’s integrated downstream industrial platform under construction in the TA’ZIZ Industrial Chemicals Zone at Ruwais Industrial City in Abu Dhabi’s Al Dhafra region.

Subject to final investment decisions and regulatory approvals, the strategic collaboration agreement—valued at about $10 billion in capital investment—could result in production 14 new chemicals that would deliver about 2.2 million tonnes/year (tpy) of additional chemical capacity in the TA’ZIZ industrial chemicals ecosystem, ADNOC said on May 6.

Designed to be tightly integrated within the TA’ZIZ and broader ADNOC ecosystems to capitalize on synergies across feedstock sourcing, utilities, infrastructure, and facilities integration, the intended new production would include industrial chemicals widely used across construction, automotive, packaging, consumer goods, infrastructure, and advanced manufacturing sectors to enhance overall competitiveness and capital efficiency of the platform, according to the company.

Anchored on UAE domestic demand and potentially able to substitute key products currently imported into the region, the new chemicals would include styrene, polystyrenes, acrylic acid and derivates, polyols, methylene diphenyl diisocyanate (MDI), epoxy resins, and linear alpha-olefins to help to strengthen local supply chain resilience by advancing self-sufficiency in strategically important chemical products via expanded local manufacturing capability.

The proposed new chemicals would build on TA’ZIZ’s Phase 1 currently planned chemical production capacity of 4.7 million tpy of marketable products scheduled for startup by yearend-2028.

ADNOC said the partnership’s strategic collaboration—which will begin with a joint-feasibility and market study for the proposed chemical expansion—comes in support of the UAE’s broader industrial strategy and the Make it in the Emirates (MIITE) initiative, which aims to strengthen domestic manufacturing capability and advance self-sufficiency in strategically important chemical products.

Alongside strengthening domestic manufacturing, the proposed chemical derivatives expansion could also unlock export opportunities, said Hamad Al Ameri, Alpha Dhabi Holding’s managing director and chief executive officer.

TA’ZIZ signing of the partnership agreement with Alpha Dhabi Holding comes only a day after the company revealed securing $28.5 billion in long-term offtake, feedstock supply, and product sales commercial agreements across its chemicals portfolio to support ongoing development of its Ruwais integrated downstream industrial platform.