ADNOC and TAQA sign 27-year utilities deal for TA’ZIZ Industrial Chemicals Zone

The long-term agreement covers both the offtake of utilities and the construction period of the utilities plant.

(L-R) Farid Al Awlaqi, CEO of TAQA’s Generation business and Mashal Al-Kindi, Chief Executive Officer of TA’ZIZ | Image source: adnoc.ae
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Women's Tabloid News Desk

ADNOC and Abu Dhabi National Energy Company PJSC (TAQA) have signed a 27-year Utilities Purchase Agreement to supply essential utilities to the TA’ZIZ Industrial Chemicals Zone in Ruwais Industrial City, Abu Dhabi.

The long-term agreement covers both the offtake of utilities and the construction period of the utilities plant. Under the arrangement, ADNOC and TAQA will jointly develop a central utilities project to support the TA’ZIZ complex. This will include electricity grid connections, steam generation, process cooling, and a range of water and wastewater services required for TA’ZIZ’s chemicals and transition-fuels projects.

TA’ZIZ, which is a joint venture between ADNOC and ADQ, will establish and own a dedicated service management company. This entity will act as the sole offtaker of the utilities, creating a stable operating framework for industrial activity within the TA’ZIZ Industrial Chemicals Zone.

Commenting on the agreement, Farid Al Awlaqi, CEO of TAQA’s Generation business, said, “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.” He added, “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, “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.”

The agreement represents an important step in the wider development of the TA’ZIZ ecosystem. The industrial chemicals zone is expected to play a key role in the UAE’s industrial diversification plans and is targeting production of 4.7 million tonnes per annum (MTPA) starting in 2028. Planned output includes methanol, low-carbon ammonia, polyvinyl chloride (PVC), ethylene dichloride (EDC), vinyl chloride monomer (VCM) and caustic soda.

Separately, TAQA’s Generation business continues to expand its footprint across the region. Its current portfolio includes 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. These include the Rumah 2 IPP and Al Nairyah 2 IPP projects, which are being developed with partners JERA and AlBawani.

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