ABU DHABI – ADNOC and Abu Dhabi National Energy Company PJSC (TAQA) today signed a 27-year utility purchase agreement to supply critical utilities to the Tahiz Industrial and Chemicals Zone in Ruwais Industrial City, Abu Dhabi. The contract period includes utility offtake and construction of the power plant.
Under the agreement, ADNOC and TAQA will jointly develop a central business project that includes grid connectivity, steam generation, process cooling, and a range of water and wastewater projects required to deliver the TA’ZIZ chemicals and transition fuels project.
TA’ZIZ, a joint venture between ADNOC and ADQ, will establish and own a service management company and become the sole receiver of the utility, providing a stable base for efficient industrial activities within the TA’ZIZ industrial chemicals zone.
Farid Al Awlaki, CEO of TAQA’s Power Generation Division, 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’s chemical and transition fuel production.” “Through our long-term partnership with ADNOC, we are investing in strategic and sustainable infrastructure that supports the diversification of Abu Dhabi’s economy and contributes to GDP growth. ADNOC and TAQA both have a proven track record in the energy sector, and together we are developing a world-class facility in Ruwai.”
Mashal Al-Kindi, CEO of TA’ZIZ, said: “This multi-year agreement with TAQA is a critical step in advancing TA’ZIZ’s long-term vision, driving sustainable growth and strengthening the UAE’s industrial base. Reliable and efficient utilities will continue to be at the heart of our value proposition, providing industry leaders with the stable infrastructure essential to the production of chemicals and transitional fuels on a global scale.”
This agreement marks an important milestone in the development of the TA’ZIZ ecosystem. TA’ZIZ is set to accelerate the UAE’s industrial diversification and is expected to produce 4.7 million tonnes per annum (MTPA) from 2028. These include methanol, low carbon ammonia, polyvinyl chloride (PVC), ethylene dichloride (EDC), vinyl chloride monomer (VCM), and caustic soda.
TAQA’s power generation business continues to expand its regional portfolio with several major projects, including the 1 GW Al Dhafra gas turbine project in the UAE and 3.6 GW of new high-efficiency power plants – Rumah 2 IPP and Al Nairiyya 2 IPP – in Saudi Arabia being developed in collaboration with partners JERA and Al Albawani.
