ADNOC and Abu Dhabi National Energy Company PJSC (TAQA) have signed 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 drive to expand manufacturing and industrial self-sufficiency.
The long-term agreement covers both the construction phase and the supply period of a central utility platform that will supply electrical grid connectivity, steam, process cooling, and water and wastewater services to TA’ZIZ’s transitional chemicals and fuels facilities. ADNOC and TAQA will jointly develop the utility infrastructure, while TA’ZIZ will establish and own a utility management company that will act as the sole offtaker.
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 largest integrated chemical hubs in the Middle East. TA’ZIZ targets production of 4.7 million tonnes per year of chemicals from 2028, covering methanol, low-carbon ammonia, polyvinyl chloride (PVC), ethylene dichloride (EDC), vinyl chloride monomer (VCM) and caustic soda.
By securing long-term centralized public services, the project reduces operational and execution risk for downstream investors and positions Ruwais as a competitive location for energy- and water-intensive chemical manufacturing. Reliable access to power, steam and cooling is a prerequisite for plants on a global scale, particularly for products such as methanol and ammonia, which are increasingly positioned as transition fuels.
For TAQA, the deal reinforces its role as a strategic enabler of industrial growth rather than simply an energy producer. The company’s Generation business has been expanding its regional presence, with major projects underway, including the 1 gigawatt Al Dhafra gas turbine project in the United Arab Emirates 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 that portfolio.
The development of Ruwais also fits into a broader regional trend of national oil companies becoming more involved in chemicals and value-added manufacturing to hedge against long-term oil demand uncertainty. 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.