ADNOC and Abu Dhabi National Energy Company PJSC (TAQA) have entered into a 27-year Utilities Purchase Agreement that will underpin the development of the TA’ZIZ Industrial Chemicals Zone in Ruwais Industrial City, a cornerstone project in the UAE’s push to expand downstream manufacturing and industrial self-sufficiency.
The long-term deal covers both the construction phase and the offtake period for a central utilities platform that will supply electricity grid connectivity, steam, process cooling, and water and wastewater services to TA’ZIZ’s chemicals and transition-fuels facilities. ADNOC and TAQA will jointly develop the utilities infrastructure, while TA’ZIZ will establish and own a service management company that will act as the sole offtaker.
The agreement 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 Middle East’s largest integrated chemicals hubs. TA’ZIZ is targeting production of 4.7 million tonnes per year of chemicals starting in 2028, spanning methanol, low-carbon ammonia, polyvinyl chloride (PVC), ethylene dichloride (EDC), vinyl chloride monomer (VCM), and caustic soda.
By securing long-term, centralized utilities, the project lowers execution and operating 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 world-scale plants, particularly for products such as methanol and ammonia that are increasingly being positioned as transition fuels.
For TAQA, the deal reinforces its role as a strategic enabler of industrial growth rather than just a power producer. The company’s Generation business has been expanding its regional footprint, with major projects underway including the 1-gigawatt Al Dhafra gas turbine project in the UAE 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 utilities platform adds a long-duration, stable-demand asset to that portfolio.
The Ruwais development also fits into a broader regional trend of national oil companies moving deeper into 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 feedstocks and integrated infrastructure to compete globally while supporting domestic industrialization.
