The second phase of growth at the TA’ZIZ Industrial Chemicals Zone in Al Ruways Industrial City, which would more than double the amount of chemicals produced at the industrial hub, was launched by Abu Dhabi National Oil Company (ADNOC) and ADQ, the principal shareholders in TA’ZIZ.

A new, large-scale steam cracker with a low carbon footprint will serve as the centerpiece of the development, providing feedstock for the different downstream production facilities and introducing many new products value chains to the UAE for the first time. The project is now in its feasibility study stage, with the start of the design phase scheduled for Q1 2023.

With a new strategic agreement inked at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) to accelerate the construction of global facilities for the manufacture of ethylene dichloride (EDC) and chlor-alkali, polyvinyl chloride, the first phase of TA’ZIZ’s expansion is continuing (PVC). Site preparation at TA’ZIZ is in progress, and before the year is out, final investment decisions on the first phase of projects are anticipated.

According to the UAE’s Net Zero by 2050 Strategic Initiative, TA’ZIZ will make use of low-carbon electricity sources like cogeneration from the on-site utility facility, grid power from nuclear, and solar clean energy, as well as the most advanced technology, to promote manufacturing growth with lower carbon emissions.

Khaleefa Yousef Al Mheiri, TA’ZIZ Acting Chief Executive Officer, said: “TA’ZIZ is a critical enabler of the UAE’s industrial development and manufacturing growth ambitions. Following strong demand from partners and investors for the first phase of world-scale growth at TA’ZIZ, and capitalizing on growing global demand for chemicals, we are expediting plans for the next phase of expansion of our chemicals production.

A joint venture incorporation agreement for the construction of a $2 billion or more ethylene dichloride (EDC), chlor-alkali, polyvinyl chloride (PVC) production facility was signed by the TA’ZIZ EDC/PVC partners, TA’ZIZ, Reliance Industries, and Shaheen during ADIPEC (AED7.34 billion).

Separately, the Zone’s utility facilities, that will provide power, steam, cooling, demineralized and wastewater services will be jointly developed by ADNOC and TAQA. And ADNOC L&S and AD Ports Group will develop a liquids terminal and logistics facility with an international partner, VTTI B.V., which will include construction of a new world-class port.

Both the Engineering, Procurement and Construction (EPC) contracts for the logistics facilities and the utilities facilities have been put out to bid, and EPC awards are soon to be made.

Over $5 billion (AED18 billion) will be invested in the first phase of TA’ZIZ, with the majority of the chemicals being produced for the first time in the UAE. Regulatory permissions are necessary for every arrangement.

The Al Ruways Industrial City and the larger chemicals, manufacturing, and industrial sectors in Abu Dhabi are expanding thanks to the end-of-2020 launch of TA’ZIZ.