Page 4 - DMEA Week 50 2021

DMEA COMMENTARY DMEA

Local firms invest as TA’ZIZ

chemicals momentum builds

A group of investors have committed to participate in a portfolio of projects
being developed at Abu Dhabi’s new speciality chemicals zone at Ruwais.

MIDDLE EAST A group of eight Emirati investors this week chlor-alkali (CA) and polyvinyl chloride (PVC).
acquired a 20% stake in a portfolio of chemicals With HE Dr Sultan Ahmed Al Jaber, UAE
projects being developed by Abu Dhabi Chemi- Minister of Industry and Advanced Technology
WHAT: cals Derivatives Co. (TA’ZIZ) at Ruwais in west- and ADNOC managing director and CEO, say-
The investors have ern Abu Dhabi. ing that the “new domestic partners will have a
provided $800mn The investors have committed to an invest- stake in ongoing activities to enable additional
of backing to TA’ZIZ ment of $800mn to acquire the stake in a raft of domestic production of critical industrial raw
chemicals projects that petrochemicals projects worth AED15bn ($3bn) materials”, the 20% stake will cover these exist-
will form the foundation which are being developed at the TA’ZIZ Indus- ing developments.
of the new industrial trial Chemicals Zone, formerly referred to as While the shareholder structures of individ-
zone. Ruwais Derivatives Park and part of the wider ual projects will not be announced until next
TA’ZIZ ecosystem. The investment marks the year, with ADNOC’s Fertiglobe affiliate, Japan’s
WHY: formation of Abu Dhabi’s first domestic public Mitsui and South Korean firm GS Energy
The TA’ZIZ partners private partnership (PPP) in the petrochemicals already having agreements in place for the 1mn
are looking to develop sector. tonne per year blue ammonia plant and India’s
world-scale facilities that The group of investors comprises Al Dhafra Reliance Industries and TA’ZIZ forming the
boost Ruwais and Abu Co-operative Society, Al Nasser Holdings, Alpha TA’ZIZ EDC & PVC JV earlier this month for
Dhabi’s role in speciality Dhabi Partners Holding, Arab Development the development of a plant to produce 1.1mn tpy
chemicals and low- Establishment, Buhairan Ltd Co., Capital Invest- of EDC, 940,000 tpy of chlor-alkali and 360,000
carbon fuels markets. ment, Mazrui International and Mazrui Energy tpy of PVC, the local investors’ 20% share will be
Services and Riverside Investments. the one constant.
WHAT NEXT: ADNOC has also signed agreements to
EPC contracts are Investment plans develop a utilities facility with TAQA and a port
expected to be awarded Abu Dhabi National Oil Co. (ADNOC) and with ADNOC Logistics & Services and AD Ports
in 2022 ahead of the holding company ADQ have stakes of 60% and Group to support the development of the chem-
industrial chemical 40% in the TA’ZIZ joint venture (JV), which is icals zone.
zone’s start-up in 2025. also developing the TA’ZIZ Light Industrial
Zone for downstream conversion industries for Petchem progress
the chemical outputs and the TA’ZIZ Industrial Following its launch in November 2020, marine
Services Zone to serve the other industrial sec- and land surveys at the project have now been
tions of the complex. These are located on the site completed. ADNOC and ADQ have awarded
of the former ‘Conversion Park’. contracts for the first stages of development of
Several early deals have already been signed the site and work is underway on geotechnical,
for projects in the industrial chemicals zone topographical and marine bathymetric surveys.
covering the development of facilities to pro- ADNOC said that industrial chemical zone
duce blue ammonia, ethylene dichloride (EDC), projects are currently in the design phase, with

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