Adnoc-ADQ jv to invest US$5 bn in potential projects in UAE
UAE’s Abu Dhabi National Oil Company (Adnoc) and Abu Dhabi state-owned holding company ADQ have selected potential investment projects worth over US$5 billion in the planned Ruwais Derivatives Park. The projects identified for potential investment and to anchor the Ruwais Derivatives Park are: chlor-alkali, ethylene dichloride, maleic anhydride, methanol, ammonia, isopropyl alcohol, and elastomers.
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The two companies signed a deal to form the jv in July to invest in chemical projects, with Adnoc holding a 60% equity stake and ADQ having the remaining 40%. Known as TA’ZIZ, the jv will “act as a catalyst for the UAE’s economic diversification and technology-led growth” by leading the development of industrial projects in the Ruwais park in Abu Dhabi.
TA’ZIZ will explore potential projects that could be worth over US$3 billion to manufacture a number of chemicals on a global scale. It will also create “an industrial ecosystem”, including a new port, utilities and infrastructure, worth more than US$2 billion.
“Our new partnership will strengthen our position as a globally competitive chemicals hub and destination for foreign direct investment, leveraging technology to further grow the UAE’s advanced manufacturing base,” Sultan al-Jaber, Adnoc’s CEO and the UAE’s industry and advanced technology minister, said in a statement.
Mohamed Hassan Al Suwaidi, CEO of ADQ, added: “The creation of TA’ZIZ embodies the strategy and aspirations of both joint venture partners, not only in contributing to and diversifying the key industrial component of the UAE’s future economy, but also in forging local collaborations needed to achieve such important developmental milestones. With companies such as Abu Dhabi Ports, Abu Dhabi National Energy Company (TAQA), Etihad Rail, Emirates Steel, DUCAB and
Arkan, ADQ has much to bring to this joint venture, and we will fulfil the trust invested in us to ensure the success of TA’ZIZ.”
Following a detailed feasibility study, TA’ZIZ will explore potential projects to manufacture a number of chemicals at a global scale, with opportunities for additional investors and partners to participate.
An industrial ecosystem will be created by Adnoc and ADQ, including a new port, utilities, infrastructure, feedstock supply and shared services at a total cost of well over US$2 billion. These facilities will be made available to new investors under a “plug and play” concept, meaning that new projects can be plugged into the existing park infrastructure, lowering the cost of investment and further enhancing the Ruwais Derivatives Park’s competitiveness. These developments will enhance the efficiency of logistics across the new identified projects, supporting the oil and gas services sector and associated industries.
The creation of a park management company is also underway to ensure ease of doing business and to help facilitate contact with relevant service providers and government agencies for investors. This entity will prioritise digital integration across its services offer, further strengthening the Ruwais advanced technology value proposition over the long-term.
Contracts have been awarded for the first stages of development for the park site, and work is already underway. This includes geotechnical and topographical surveys, a marine bathymetric survey and health, safety and environment impact assessments. Once completed in late 2020, these surveys will enable civil engineering works to prepare the park site for construction and dredging for an entirely new port facility. Several design and engineering contracts will be awarded early 2021 for the design of the chemical plants as well as the required ecosystem.
The Ruwais Derivatives Park enjoys strong synergies with Adnoc’s integrated downstream assets for feedstocks and services, as well as advantaged maritime, land and air logistics and transport links. The park site is adjacent to the Ruwais Industrial Complex and enjoys a favourable location at the crossroads of east-west trade flows and routes to the UAE’s target markets, with a third of the world’s population accessible within four hours by plane. The city of Ruwais is today well-positioned to further grow and flourish with the influx of families that seek to build careers and lives in what has become a dynamic, highly attractive residential community.