TA’ZIZ Inks $28.5B Chemical Agreements to Propel UAE Industry

TA’ZIZ has finalized a series of long-term contracts valued at $28.5 billion (AED104.6 billion) at the Make it in the Emirates forum, addressing offtake, feedstock, and sales aspects for its expanding range of chemicals.

The contracts encompass essential products like methanol, polyvinyl chloride (PVC), ethylene dichloride (EDC), vinyl chloride monomer (VCM), caustic soda, salt, and natural gas. Ranging in duration from five to 25 years, these agreements are set to ensure a robust global demand alongside a reliable supply of local raw materials.

This initiative bolsters the UAE’s stature in extensive chemical manufacturing and fosters a complete domestic chemicals ecosystem.

Significant partnerships include deals with ADNOC and Proman for methanol, as well as arrangements with Emirates Global Aluminium (EGA) for caustic soda, and global entities like Mitsubishi Corporation, Mitsui & Co., Sanmar Group, Tricon Energy, and Vinmar International for various chemical commodities.

Mashal Saoud Al-Kindi, CEO of TA’ZIZ, remarked that these contracts signify a pivotal advancement in the UAE’s industrial landscape, ensuring both demand and feedstock for large-scale production, thus reinforcing supply chains and generating long-term economic contributions and employment.

A notable milestone is a supply agreement with EGA for approximately 200,000 dry metric tons of caustic soda annually, establishing TA’ZIZ as the premier domestic supplier for EGA’s Al Taweelah alumina refinery in Khalifa Economic Zones Abu Dhabi (KEZAD).

Additionally, ADNOC Gas has signed a 25-year agreement exceeding $5 billion (AED18.4 billion) to provide natural gas for the TA’ZIZ methanol initiative.

TA’ZIZ also entered a 20-year salt supply agreement with Sama Salt to enhance operations at its PVC facility.

These agreements are poised to enhance local supply chains by leveraging domestic resources and advancing industrial self-sufficiency in the UAE.

Projected to yield 4.7 million tonnes annually of chemicals by 2028, the TA’ZIZ Industrial Chemicals Zone represents a substantial boost for the nation's industrial domain.