ADNOC and Abu Dhabi National Energy Company PJSC (TAQA) have entered into a 27-year utility purchase agreement that will support the development of the TA’ZIZ Industrial Chemicals Zone in Ruwais Industrial City, a key project in the UAE’s efforts to develop downstream manufacturing and industrial self-sufficiency.
The long term agreement covers both the construction phase and offtake period of a central utility hub that will provide power grid connectivity, steam, process cooling, and water and wastewater services to TA’ZIZ’s chemical and transitional fuels facilities. ADNOC and TAQA will jointly develop the utility infrastructure, while TA’ZIZ will create and own a service management company which will act as sole buyer.
The deal provides critical infrastructure certainty for TA’ZIZ, a joint venture between ADNOC and Abu Dhabi holding company ADQ, as it advances plans to build one of the Middle East’s largest integrated chemical hubs. TA’ZIZ targets production of 4.7 million tonnes per year of chemicals from 2028, including methanol, low carbon ammonia, polyvinyl chloride (PVC), ethylene dichloride (EDC), vinyl chloride monomer (VCM) and caustic soda.
By ensuring long-term centralized utilities, the project reduces execution and operational risks for downstream investors and positions Ruwais as a competitive location for the manufacturing of energy- and water-intensive chemicals. Reliable access to electricity, steam and cooling is a prerequisite for factories globally, particularly for products such as methanol and ammonia, which are increasingly positioned as transition fuels.
For TAQA, the agreement reinforces its role as a strategic catalyst for industrial growth rather than just a producer of electricity. The company’s Generation business has expanded its regional presence, with major projects underway including the 1 gigawatt Al Dhafra gas turbine project in the UAE and 3.6 GW of new high-efficiency power capacity in Saudi Arabia through the Rumah 2 and Al Nairyah 2 independent power projects. The TA’ZIZ utility platform adds a long-lived, stable-demand asset to this portfolio.
The Ruwais development is also part of a broader regional trend in which national oil companies are moving more toward chemicals and value-added manufacturing to hedge against long-term uncertainty in oil demand. ADNOC has made downstream expansion a central pillar of its strategy, leveraging low-cost raw materials and integrated infrastructure to compete globally while supporting domestic industrialization.
