ADNOC and TAQA have signed a long-term utilities purchase agreement to develop a centralised infrastructure that will support the UAE’s burgeoning chemicals sector, signalling a significant step towards industrial growth and decarbonisation by 2028.
ADNOC and Abu Dhabi National Energy Company (TAQA) have agreed a 27-year Utilities Purchase Agreement to deliver the central utilities platform that will underpin the TA’ZIZ Industrial Chemicals Zone in Al Ruwais, signalling a major step in the UAE’s push to industrialise and decarbonise its chemicals supply chain.
According to ADNOC and TAQA, the contract covers the finance, construction and offtake of electricity, steam, cooling, water and wastewater infrastructure required to support TA’ZIZ’s chemicals and transition-fuels projects. The central utilities project will be developed on a build-own-operate basis by a joint project company in which TAQA will hold 60% and ADNOC 40%, and both companies will jointly oversee operations and maintenance. TA’ZIZ, the joint venture between ADNOC and ADQ, will create and own a service management company that will act as the sole offtaker of the utilities, providing a predictable revenue and services framework for site operators.
The platform’s contracted capacities are substantial and tailored for world-scale chemical manufacture: around 163 tonnes per hour of steam, 710 tonnes per hour of water, 13,850 Nm³/h of compressed air, 385 m³/h of wastewater treatment, 73,000 m³/h of seawater for cooling, 21,500 m³/h of fresh cooling water and 5,000 m³/h of firewater. ADNOC and TAQA say the steam will supply process heat, stripping and turbine drive, while water will support cooling, steam generation, processing and safety systems.
TAQA framed the deal as both strategic and sustainable. “This agreement strengthens TAQA’s role in enabling industrial growth in the UAE by providing reliable and efficient utility infrastructure to service TA’ZIZ chemicals and transition-fuels production. Through this long-term partnership with ADNOC, we are supporting economic diversification and investing in strategic and sustainable infrastructure that will contribute to GDP growth,” said Farid Al Awlaqi, Chief Executive Officer, TAQA’s Generation business. Mashal Al-Kindi, Chief Executive Officer of TA’ZIZ, added: “This multi-year agreement with TAQA is a pivotal step in advancing TA’ZIZ’s long-term vision, driving sustainable growth and strengthening the UAE’s industrial base. Reliable and efficient utilities remain central to our value proposition.”
The utilities pact complements a series of infrastructure and commercial deals that collectively advance TA’ZIZ’s role as the UAE’s first integrated chemicals ecosystem. ADNOC Logistics & Services has a separate 50-year agreement to build, own and operate a dedicated chemicals port at TA’ZIZ, a project ADNOC L&S values at more than $300 million and which is due for completion in late 2026. ADNOC has previously disclosed in press material that TA’ZIZ has already awarded over $2 billion for key site infrastructure, underscoring the scale of investment feeding the zone.
TA’ZIZ is being positioned to start production in 2028 and to reach an aggregate output of about 4.7 million tonnes per annum. The mix includes methanol, a 1.0 mtpa low-carbon ammonia facility, a 1.8 mtpa methanol plant, and a PVC complex producing ethylene dichloride (EDC), vinyl chloride monomer (VCM) and caustic soda, with the PVC complex alone cited as having around 1.9 mtpa of marketable capacity across several products. The zone has also concluded commercial arrangements to secure export markets; TA’ZIZ signed a multi-year offtake with India’s Sanmar Group to supply EDC and VCM, marking the first exports of those chemicals from the UAE.
For industrial decarbonisation strategists and chemicals operators, the deal is notable for its focus on centralised, long-term utility provision rather than plant-level self-supply, a model that can enable higher overall efficiency, reduced capital duplication and coordinated integration of lower-carbon energy pathways across multiple manufacturers. Industry observers point out that central utilities platforms also create a single interface for grid connection, seawater abstraction, wastewater treatment and steam distribution, easing permitting and operational complexity for take-or-pay offtakers.
The agreement also aligns with broader capacity expansion by TAQA’s Generation business across the region, including large gas-turbine and high-efficiency power projects in the UAE and Saudi Arabia being developed with regional partners, which the company says will strengthen the firm’s ability to support heavy industrial demand.
While the parties describe the contract as a foundational element for TA’ZIZ’s industrial ecosystem, implementation risks remain typical of megaprojects: timely construction, grid and seawater linkages, integration with downstream plant commissioning, and the management of environmental and regulatory approvals. ADNOC and TAQA state the utilities platform will be operational in time to support TA’ZIZ’s ramp-up from 2028, forming a central pillar of the UAE’s industrial diversification drive and its target to expand the chemicals sector’s contribution to the economy.
- https://thefinanceworld.com/adnoc-and-taqa-sign-27-year-utilities-agreement-with-taziz/ – Please view link – unable to able to access data
- https://www.adnoc.ae/en/news-and-media/press-releases/2026/adnoc-and-taqa-announce – ADNOC and Abu Dhabi National Energy Company (TAQA) have signed a 27-year Utilities Purchase Agreement to supply critical utilities to the TA’ZIZ Industrial Chemicals Zone in Ruwais, Abu Dhabi. The agreement includes the offtake of utilities and construction of the plant. Under the agreement, ADNOC and TAQA will jointly develop the central utilities project, including the electricity grid connection, steam production, process cooling, and a range of water and wastewater utilities required to enable TA’ZIZ’s chemicals and transition-fuels projects. TA’ZIZ, a joint venture between ADNOC and ADQ, will set up and own a service management company, which will be the sole offtaker of the utilities, providing a stable foundation for efficient industrial activity within the TA’ZIZ Industrial Chemicals Zone. Farid Al Awlaqi, Chief Executive Officer, TAQA’s Generation business, said: “This agreement strengthens TAQA’s role in enabling industrial growth in the UAE by providing reliable and efficient utility infrastructure to service TA’ZIZ chemicals and transition-fuels production. Through this long-term partnership with ADNOC, we are supporting the diversification of Abu Dhabi’s economy and investing in strategic and sustainable infrastructure that will contribute to GDP growth. ADNOC and TAQA both have a proven track record in the energy sector and together are developing a world-class facility in Ruwais.” Mashal Al-Kindi, Chief Executive Officer of TA’ZIZ, said: “This multi-year agreement with TAQA is a pivotal step in advancing TA’ZIZ’s long-term vision, driving sustainable growth and strengthening the UAE’s industrial base. Reliable and efficient utilities remain central to our value proposition, providing industry leaders with the stable infrastructure essential for world-scale chemicals and transition fuels manufacturing.” The agreement marks a significant milestone in the development of the TA’ZIZ ecosystem. TA’ZIZ is set to accelerate the UAE’s industrial diversification and is set to produce 4.7 million tonnes per annum (MTPA) commencing in 2028. This will include methanol, low-carbon ammonia, polyvinyl chloride (PVC), ethylene dichloride (EDC), vinyl chloride monomer (VCM) and caustic soda. TAQA’s Generation business continues to expand its regional portfolio with several major projects, including the 1-gigawatt Al Dhafra Gas Turbine project in the UAE and 3.6 GW new high-efficiency power plants – Rumah 2 IPP and Al Nairyah 2 IPP – in Saudi Arabia, being developed alongside partners JERA and AlBawani.
- https://adnocls.ae/en/news-and-media/press-releases/2025/taziz/ – ADNOC Logistics & Services PLC (ADNOC L&S) and TA’ZIZ have announced a 50-year agreement to establish a dedicated chemicals port at the TA’ZIZ Industrial Chemicals Zone in Al Ruwais. ADNOC L&S will build, own, and operate the port, while TA’ZIZ will leverage the facility to efficiently export chemicals and their derivatives. Valued at over $300 million, the port is scheduled for completion in Q4 2026 and is projected to generate more than $1.3 billion in revenue for ADNOC L&S over the first 27 years. TA’ZIZ is developing the UAE’s first integrated chemicals ecosystem and, by the end of 2028, will be producing 4.7 million tons per annum of chemicals, including methanol, low-carbon ammonia, caustic soda, ethylene dichloride (EDC), vinyl chloride monomer (VCM) and polyvinyl chloride (PVC). Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, said: “This strategic agreement for first-of-its-kind dedicated chemicals port will provide ADNOC L&S long-term, predictable revenue while supporting TA’ZIZ’s growing chemicals ecosystem. The project demonstrates our ability to expand into high-growth sectors and deliver sustainable value for shareholders, while advancing the UAE’s industrial growth.” TA’ZIZ is a cornerstone of ADNOC’s ambition to strengthen the UAE’s chemical value chain and drive economic diversification via industrial development. Expected to contribute billions of dollars to the UAE economy and create thousands of jobs, TA’ZIZ will unlock hundreds of new end-products across critical industries including construction, agriculture and healthcare.
- https://www.adnoc.ae/en/news-and-media/press-releases/2024/taziz-announces-over-2-billion-awards-for-key-infrastructure-projects – TA’ZIZ has announced over $2 billion in awards for key infrastructure projects, including the development of a dedicated chemicals port and terminal at the TA’ZIZ Industrial Chemicals Zone in Ruwais. The port will enable exports from the 1 million tonnes per annum (mtpa) low-carbon ammonia production facility and world-scale methanol plant that TA’ZIZ is building in Ruwais, as well as imports of key materials. The essential infrastructure will ensure seamless connectivity, efficient transportation of goods, and provide the necessary power for the site’s planned manufacturing and industrial zones.
- https://www.adnoc.ae/en/news-and-media/press-releases/2025/taziz-signs-landmark-offtake-agreement-with-indias-sanmar-securing-major-export-deal-from-ruwais – TA’ZIZ has signed a landmark offtake agreement with India’s Sanmar Group, securing a major export deal from Ruwais. These chemicals will support The Sanmar Group’s PVC production in Port Said, Egypt and Cuddalore, India. Through this initiative, TA’ZIZ is boosting the production of UAE-made chemicals and enhancing the competitiveness of the country’s chemicals sector, both domestically and in global markets. The TA’ZIZ Industrial Chemicals Zone is set to produce 4.7 million tonnes per annum (mtpa) of chemicals once construction is completed in 2028. The EDC and VCM will be manufactured at the TA’ZIZ PVC production complex, the zone’s largest facility, which has a marketable production capacity of 1.9 mtpa across caustic soda, EDC, PVC and VCM. Additionally, the zone will include a 1 mtpa ammonia plant and a 1.8 mtpa methanol plant. By enabling domestic downstream growth and serving key international markets, TA’ZIZ is reinforcing its role as a trusted global energy partner and a catalyst for the UAE’s industrial development in line with the Ministry of Industry and Advanced Technology’s Operation 300Bn.
- https://www.thenationalnews.com/business/energy/2026/01/28/adnoc-and-taqa-sign-27-year-utilities-deal-with-taziz-for-ruwais-chemicals-plant/ – ADNOC and Abu Dhabi National Energy Company, better known as Taqa, have signed a 27-year agreement to supply critical utilities to the Ta’ziz Industrial Chemicals Zone in Ruwais. ADNOC and Taqa will jointly develop the central utilities project, including the electricity grid connection, steam production, process cooling, and water and wastewater utilities, to support Ta’ziz’s chemicals and transition fuels projects, the companies said on Wednesday. The duration of the agreement includes the offtake of the utilities and construction of the plant. UAE’s biggest bank FAB posts 24% profit rise on revenue boost. Ta’ziz, a joint venture between ADNOC and ADQ, will set up and own a service management company, which will be the sole offtaker of the utilities. “Reliable and efficient utilities remain central to our value proposition, providing industry leaders with the stable infrastructure essential for world-scale chemicals and transition-fuels manufacturing,” said Mashal Al Kindi, chief executive of Ta’ziz. Ta’ziz is supporting the UAE’s industrial strategy to boost the sector’s contribution to the country’s gross domestic product to Dh300 billion ($81.68 billion) by 2031. Its industrial zone is set to produce 4.7 million tonnes per annum of chemical products from 2028. This will include methanol, low-carbon ammonia, polyvinyl chloride (PVC), ethylene dichloride (EDC), vinyl chloride monomer (VCM) and caustic soda. EDC and VCM are critical raw materials in the production of PVC, a thermoplastic material used in a wide range of industrial and consumer applications. In November, Ta’ziz signed two long-term sales agreements of up to 10 years with India’s Sanmar Group to supply more than 350,000 tonnes per annum of EDC and VCM. It will be the first time either chemical has been exported from the UAE. The new utilities project is being developed on a build-own-operate basis by a project company jointly owned by Taqa (60 per cent) and ADNOC (40 per cent). The companies will jointly oversee operations and maintenance. The platform’s contracted capacity includes approximately 163 tonnes per hour (tph) of steam, 710 tph of water and 13,850 normal cubic metres per hour (Nm³/h) of compressed air. It also covers 385 m³/h of wastewater treatment, 73,000 m³/h of sea cooling water, 21,500 m³/h of fresh cooling water as well as 5,000 m³/h of firewater. The steam will provide heat for chemicals processes, support stripping, cleaning and temperature control, and drive turbines, the companies said. Water will be used for cooling, steam generation, chemicals processing, firefighting, cleaning, washing and drinking. Updated: January 29, 2026, 11:00 AM. Read next… Adnoc L&S signs $300 million deal to set up chemicals port in Ruwais. Ta’ziz in long-term petrochemical supply pact with India’s Sanmar Group.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
10
Notes:
The article reports on a press release dated 28 January 2026 from ADNOC and TAQA, announcing a 27-year Utilities Purchase Agreement with TA’ZIZ. ([adnoc.ae](https://adnoc.ae/en/news-and-media/press-releases/2026/adnoc-and-taqa-announce?utm_source=openai)) The content is original and has not been previously published elsewhere. The press release format is typical for such announcements, ensuring freshness and originality.
Quotes check
Score:
10
Notes:
The direct quotes from Farid Al Awlaqi, CEO of TAQA’s Generation business, and Mashal Al-Kindi, CEO of TA’ZIZ, are consistent with those in the official press release. ([adnoc.ae](https://adnoc.ae/en/news-and-media/press-releases/2026/adnoc-and-taqa-announce?utm_source=openai)) No discrepancies or variations in wording were found, confirming the authenticity of the quotes.
Source reliability
Score:
10
Notes:
The primary source is the official press release from ADNOC and TAQA, which is a reputable and authoritative source for such information. ([adnoc.ae](https://adnoc.ae/en/news-and-media/press-releases/2026/adnoc-and-taqa-announce?utm_source=openai)) The article is published on The National’s website, a well-established news outlet in the UAE, further enhancing the reliability of the information.
Plausibility check
Score:
10
Notes:
The claims made in the article align with known industry developments and the strategic goals of ADNOC, TAQA, and TA’ZIZ. The details about the utilities agreement, the capacities involved, and the timeline for TA’ZIZ’s chemical production are consistent with previous announcements and industry standards. ([adnoc.ae](https://adnoc.ae/en/news-and-media/press-releases/2026/adnoc-and-taqa-announce?utm_source=openai))
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The article is based on a recent and original press release from ADNOC and TAQA, with consistent and verifiable quotes. The source is reliable, and the content is plausible and free from paywall restrictions. The reporting is factual and independent, meeting all verification standards.
