Abu Dhabi National Oil Company (Adnoc) has issued tenders for front-end engineering and design (feed) work on petrochemical derivatives projects planned to be built at the upcoming Ruwais derivatives park.
The Ruwais derivatives park is being operated by Ta’ziz, Adnoc’s 60:40 joint venture (JV) with Abu Dhabi’s industrial holding company ADQ.
Along with the announcement about the feed tenders, Adnoc has also extended its support to the UAE’s Ministry of Industry and Advanced Technology’s (MoIAT) ‘Make it in the Emirates’ strategy, and said Ta’ziz will create an industrial ecosystem that will facilitate significant manufacturing of chemical derivatives in the UAE.
Adnoc in February said construction work on the planned Ruwais derivatives park in Abu Dhabi is expected to start in early 2022.
Land surveys for the estimated $5bn petrochemicals derivatives complex in Ruwais have also been completed.
Adnoc and ADQ announced completing the establishment process for Ta’ziz in November last year. The companies first announced their intention to establish the JV in July 2020.
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Planned chemical projects
Adnoc has previously said potential investment projects selected for the first phase at the Ruwais derivatives park will be worth more than $5bn.
Ta’ziz will explore “potential projects to manufacture a number of chemicals at a global scale, with opportunities for additional investors and partners to participate”.
Total investment in these projects could be in excess of $3bn, with most of the chemicals set to be produced in the UAE for the first time.
The projects identified for potential Ta’ziz investment and to anchor the Ruwais derivatives park are:
|Water treatment, metallurgy, textiles
|Housing, infrastructure, consumer goods
|Piping, construction, heavy transport
|Energy, consumer goods, pharmaceuticals
|Agriculture, apparel, energy
|Automobiles, adhesives, food production and storage
An industrial ecosystem will be created by Adnoc and ADQ, including a new port, utilities, infrastructure, feedstock supply and shared services at a total cost of well over $2bn.
These facilities will be made available to new investors under a “plug and play” concept, implying that new projects can be plugged into the existing park infrastructure, lowering the cost of investment “and further enhancing the Ruwais derivatives park’s competitiveness”, Adnoc has earlier said.
This article is published by MEED, the world’s leading source of business intelligence about the Middle East. MEED provides exclusive news, data and analysis on the Middle East every day. For access to MEED’s Middle East business intelligence, subscribe here.