TAZIZ Utilities Agreement Strengthens UAE Industrial Growth And Reliable Infrastructure

ADNOC and Abu Dhabi National Energy Company PJSC (TAQA) have agreed a 27-year Utilities Purchase Agreement to support the TA’ZIZ Industrial Chemicals Zone in Ruwais Industrial City. The deal covers construction and offtake of utilities, enabling chemicals and transition-fuels production expected to reach 4.7 million tonnes per annum from 2028.

TA’ZIZ, a joint venture between ADNOC and ADQ, will create and own a dedicated service management company. This company will act as the sole offtaker for all supplied utilities. The model is designed to give investors predictable services and to underpin large-scale industrial operations within the TA’ZIZ Industrial Chemicals Zone.

Under the utilities agreement, ADNOC and TAQA will jointly develop a central utilities project for TA’ZIZ. The scheme includes power grid connection, steam generation and process cooling. It also covers several water and wastewater services needed to keep industrial plants operating safely and efficiently within the Ruwais complex.

The planned utilities network is expected to serve chemicals and transition-fuels projects across the TA’ZIZ area. Reliable delivery of electricity, steam, cooling and water is viewed as essential for complex manufacturing units. The dedicated setup aims to reduce duplication of infrastructure and to lower overall operating costs for future tenants.

"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," said Farid Al Awlaqi, CEO of TAQA’s Generation business. "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."

ADNOC TAQA TA’ZIZ utilities agreement and production plans

The agreement is considered a major step in the wider TA’ZIZ ecosystem, which targets industrial diversification in the UAE. From 2028, TA’ZIZ facilities are planned to produce a range of chemicals at a combined capacity of 4.7 million tonnes per year, supporting supply chains across regional and international markets.

Planned output from TA’ZIZ will include methanol, low-carbon ammonia and several key chlor-alkali and vinyl products. These products are expected to support manufacturing sectors, including construction, plastics and energy-related applications.

The deal also aligns with TAQA's Generation business strategy to expand across the region. Several large projects are under development, including the 1-gigawatt Al Dhafra Gas Turbine project in the UAE. Additional capacity of 3.6 GW is planned through new high-efficiency power plants in Saudi Arabia.

The Saudi projects, Rumah 2 IPP and Al Nairyah 2 IPP, are being developed with partners JERA and AlBawani. Alongside the new TA’ZIZ utilities development, these schemes highlight how TAQA and ADNOC aim to support long-term, lower-carbon industrial growth through integrated energy and utilities infrastructure across the Gulf region.

With inputs from WAM