The second phase of the derivatives complex in Ruwais could produce up to 14 new chemicals, with a total output capacity of approximately 2.2 million tonnes a year
Taziz and local investment company Alpha Dhabi Holding have signed an agreement to commit $10bn (AED36.7bn) in capital investment towards developing the second phase of the Taziz industrial chemicals production complex in Ruwais Industrial City, in Abu Dhabi’s Al-Dhafra region.
The partners have undertaken a joint feasibility and market study and, subject to final investment decisions and regulatory approvals, the second phase of the Taziz Industrial Chemicals Zone could produce up to 14 new chemicals, with a total output capacity of approximately 2.2 million tonnes a year (t/y).
The chemicals being studied by the partners include styrene and polystyrene, acrylic acid and derivatives, polyols, methylene diphenyl diisocyanate (MDI), epoxy resins and linear alpha-olefins, Taziz said in a statement.
Adnoc Group and Abu Dhabi-based holding company ADQ – the 60:40 shareholders in Taziz – first announced the second phase of the Taziz Industrial Chemicals Zone in November 2022, stating at the time that they were conducting a feasibility study for the proposed expansion.
Progress on the study and the front-end engineering and design (feed) work, which began in 2023, is understood to have been slow, with the shareholders carefully assessing market fundamentals and the project’s cost implications during this period.
Taziz and Alpha Dhabi signed the agreement during the Make it in the Emirates Forum in Abu Dhabi on 6 May.
Chemicals production is a priority sector under Operation 300bn, the UAE’s industrial growth strategy. The strategy is being overseen by the Ministry of Industry & Advanced Technology, which aims to increase the industrial sector’s contribution to the UAE’s GDP to AED300bn ($81.7bn) by 2031.
The chemicals proposed in the second phase are widely used across construction, automotive, packaging, consumer goods, infrastructure and advanced manufacturing, and are “underpinned by strong domestic demand and long-term growth fundamentals,” Taziz said.
“New chemical production would be tightly integrated within the Taziz and broader [Abu Dhabi National Oil Company] Adnoc ecosystems, capitalising on synergies across feedstock sourcing, utilities, infrastructure and facilities integration, enhancing overall competitiveness and capital efficiency,” Taziz added.
Taziz chemicals zone first phase
The second phase of the Taziz Industrial Chemicals Zone will double the number of chemicals produced by the first phase. With a total production capacity of 4.7 million t/y, the first phase of the petrochemical derivatives park is expected to begin operations by the end of 2028.
Since 2021, Taziz has attracted investments from several foreign investors for its seven planned chemicals projects in the under-construction first phase of the Taziz Industrial Chemicals Zone.
Additionally, in December 2021, Taziz secured agreements from eight UAE-based entities for investments in its planned chemicals projects in Ruwais. The agreements marked the first domestic public-private partnership in Abu Dhabi’s downstream oil, gas and petrochemicals sector.
UK-headquartered Wood Group has performed the feed works on the seven projects, which are:
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Anchor product
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End use
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Chlor alkali
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Water treatment, metallurgy and textiles
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Ethylene dichloride
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Housing, infrastructure and consumer goods
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Maleic anhydride
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Piping, construction and heavy transport
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Methanol
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Energy, consumer goods and pharmaceuticals
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Blue ammonia
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Agriculture, apparel and energy
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Isopropyl alcohol
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Healthcare and cosmetics
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Elastomers
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Automobiles, adhesives, food production and storage
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A joint venture of UAE-based Fertiglobe, South Korea’s GS Energy Corporation and Japanese investment firm Mitsui & Company has invested in a “world-scale” blue ammonia production facility in the Ruwais petrochemicals derivatives complex.
The Fertiglobe/GS Energy/Mitsui joint venture awarded Italian contractor Tecnimont the engineering, procurement and construction (EPC) contract for the project in May 2024. Construction on the facility started in June 2024.
Separately, last February, Taziz awarded South Korean contractor Samsung E&A the main EPC contract to build the UAE’s first methanol plant in the Taziz Industrial Chemicals Zone. The value of the EPC contract is $1.7bn and the duration of works is 44 months.
The nameplate production capacity of the planned methanol complex is 5,000 metric tonnes a day, or 1.8 million metric t/y. Switzerland-based energy and chemicals company Proman is a joint investor in the project.
Next, in November last year, Taziz awarded the main EPC contract to build a complex of three specialty chemical plants in the Taziz Industrial Chemicals Zone. The facility will produce 1.9 million tonnes a year of marketable polyvinyl chloride (PVC), ethylene dichloride (EDC), vinyl chloride monomer (VCM) and caustic soda.
China National Chemical Engineering & Construction Corporation Seven (CC7) won the EPC contract, valued at $1.99bn, to build the chemicals cluster known as Project Salt. EPC works on the project are expected to be completed by Q4 2028.
