Abu Dhabi industrial hub awards Dh7.35b in infrastructure contracts
Abu Dhabi’s new industrial hub’s new contracts also include dedicated terminal
Dubai: The Abu Dhabi industrial hub Ta’ziz has issued engineering, procurement and construction contracts valued at Dh7.34 billion for site infrastructure at Al Ruwais Industrial City in Al Dhafra Region.
The infrastructure works will to advance Ta’ziz’s chemicals and transition fuels ecosystem.
Ta’ziz is on track to commence production in 2027, with a targeted output of 4.7 million tons per annum (mtpa) of chemicals by 2028. The production range of chemicals includes many of not previously manufactured in the UAE. It will help with the local manufacture of many new construction, agriculture and healthcare products.
In its initial phase, Ta’ziz will produce six chemicals: caustic, ethylene dichloride, vinyl chloride monomer, polyvinyl chloride, low-carbon ammonia and methanol.
The EPC contract for the chemicals port was awarded to NMDC Group (formerly National Marine Dredging Company). When the port is complete, it will facilitate export of chemicals and transition fuels, ensuring operational connectivity to regional and global markets and enhancing access to imported supplies.
The contract for the chemicals terminal - including the development of storage facilities, tank-to-jetty pipelines, jetty-to-tank pipelines, inter-site pipelines and liquid product storage - was awarded in partnership with Advario to Rotary Engineering.
The dedicated chemicals port and terminal will enable exports from the 1 mtpa low-carbon ammonia production facility and methanol plant that is being built in Ruwais.
A third project award to develop essential infrastructure for the 17-square kilometer Ta’ziz site went to Al Geemi Contracting. A further contract will include the development of centralized utilities including power transmission, steam, cooling water and water.
A sizable portion of the value of these contracts is expected to flow back into the UAE’s economy under ADNOC’s In-Country Value (ICV) program.
ADNOC’s new LNG sales deal
ADNOC has signed its first long-term sales and purchase Agreement (SPA) for the lower-carbon Ruwais LNG project, currently under development in Al Ruwais Industrial City. This SPA converts the previous ‘heads of agreement’ ADNOC entered into with Germany’s Sefe in March.
The 15-year, 1 million tonnes per annum (mtpa) SPA was signed with SEFE Marketing and Trading Singapore Pte Ltd., a subsidiary of Sefe Securing Energy for Europe GmbH. The LNG will primarily be sourced from the Ruwais LNG project, with deliveries expected to start in 2028 upon start of commercial operations.
To date, over 7 mtpa of Ruwais LNG project’s production capacity has been committed to international customers through long-term agreements.