ADNOC, ADQ Downstream Chemicals JV to Invest $5 Billion at Ruwais Derivatives Park

Abu Dhabi National Oil Company and industrial holding company ADQ are looking to collaborate on $5 billion worth of projects in the Ruwais Derivatives Park.

The two companies signed a deal to form the JV in July to invest in chemical projects, with ADNOC holding a 60% equity stake and ADQ having the remaining 40%.

Ta’ziz, the joint venture between Adnoc and ADQ will look to invest in $3 billion worth of chemical projects, with $2 billion to be spent in developing port and infrastructure facilities in Ruwais.

The partners have identified chemical compounds with uses in water treatment, metallurgy, agriculture, pharmaceuticals, adhesives and automobiles for anchor projects in Ruwais.

Among some of the compounds that are likely to be manufactured, following feasibility studies, as part of the JV are chlor-alkali, ethylene dichloride, maleic anhydride, methanol, ammonia, isopropyl alcohol and elastomers.

Design and engineering contracts for the planned infrastructure, including chemical plants will be awarded in “early 2021”.

The facilities would be made available to investors on the basis of a ‘plug and play’ concept.

“New projects can be plugged into the existing park infrastructure, lowering the cost of investment and further enhancing the Ruwais Derivatives Park’s competitiveness,” the companies said.

ADNOC revealed in 2018 plans to invest $45 billion with partners to develop its local downstream activities, including the expansion of its Ruwais refinery and petrochemical capacity in the industrial hub.

A consortium grouping Global Infrastructure Partners, Brookfield Asset Management, Singapore’s sovereign wealth fund GIC, Ontario Teachers’ Pension Plan Board, South Korea ‘s NH Investment & Securities and Italy’s Snam have been bought in to invest in select ADNOC gas pipeline assets valued at $20.7 billion.

ADNOC last year clinched a $5 billion deal with a consortium that includes GIC, BlackRock Inc., KKR & Co and Abu Dhabi Retirement Pensions and Benefits Fund to sell them select pipeline infrastructure and collectively hold a 49% stake in ADNOC Oil Pipelines, a subsidiary of the parent company.