ADNOC and TAQA Sign 27-Year Utilities Deal to Support TA’ZIZ Chemicals Complex at Ruwais

ADNOC and Abu Dhabi National Energy Company PJSC (TAQA) have announced the signing of a long-term, 27-year Utilities Purchase Agreement that will support the development and operation of the TA’ZIZ Industrial Chemicals Zone in Ruwais Industrial City, Abu Dhabi. The agreement represents a major step in enabling world-scale chemicals and transition-fuels production in the UAE, reinforcing the country’s industrial growth and economic diversification ambitions. The 27-year duration of the agreement covers both the construction phase of the utilities infrastructure and the long-term offtake of essential services required to operate the industrial complex efficiently and reliably.

Under the terms of the agreement, ADNOC and TAQA will jointly develop and deliver a centralized utilities project designed to meet the extensive operational requirements of the TA’ZIZ ecosystem. This integrated utilities platform will include electricity grid connectivity, steam generation facilities, process cooling systems, and comprehensive water and wastewater treatment services. Together, these utilities will form the backbone of the TA’ZIZ Industrial Chemicals Zone, ensuring uninterrupted and efficient supply to support large-scale chemicals manufacturing and transition-fuels projects.

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 produced under this agreement. This structure provides long-term certainty and operational stability, allowing industrial tenants within the TA’ZIZ zone to focus on production efficiency and innovation while relying on a dependable utilities framework. The centralized model also supports economies of scale, optimizing energy and water use across the industrial zone.

Commenting on the agreement, Farid Al Awlaqi, Chief Executive Officer of TAQA’s Generation business, highlighted the strategic importance of the partnership. He noted that the agreement reinforces TAQA’s role in enabling industrial expansion across the UAE by delivering reliable and efficient utility infrastructure for TA’ZIZ’s chemicals and transition-fuels operations. Through this long-term collaboration with ADNOC, TAQA is contributing to Abu Dhabi’s economic diversification, investing in strategic infrastructure assets, and supporting sustainable GDP growth. He also emphasized that the combined experience and proven track records of ADNOC and TAQA in the energy sector are helping to deliver a world-class industrial facility in Ruwais.

Mashal Al-Kindi, Chief Executive Officer of TA’ZIZ, described the multi-year agreement as a critical milestone in advancing TA’ZIZ’s long-term vision. He stated that dependable and efficient utilities are fundamental to TA’ZIZ’s value proposition, providing global industry players with the robust infrastructure needed for world-scale chemicals and transition-fuels manufacturing. The agreement, he added, will help drive sustainable growth and further strengthen the UAE’s industrial base.

The utilities agreement marks a significant development in the broader TA’ZIZ ecosystem, which is positioned to play a key role in accelerating the UAE’s industrial diversification strategy. TA’ZIZ is expected to commence production in 2028, with a planned output capacity of 4.7 million tonnes per annum. The product slate will include methanol, low-carbon ammonia, polyvinyl chloride (PVC), ethylene dichloride (EDC), vinyl chloride monomer (VCM), and caustic soda, supporting both domestic demand and export markets.

Meanwhile, TAQA’s Generation business continues to expand its regional footprint through several major power projects. These include the 1-gigawatt Al Dhafra Gas Turbine project in the UAE, as well as 3.6 gigawatts of new high-efficiency power generation capacity in Saudi Arabia through the Rumah 2 IPP and Al Nairyah 2 IPP projects, which are being developed in partnership with JERA and AlBawani.