TA’ZIZ signs $28.5bn offtake and feedstock agreements to expand UAE chemicals ecosystem
- $28.5 billion offtake and feedstock agreements covering methanol, PVC, EDC, VCM, caustic soda, salt and natural gas.
- Deals span five to 25 years; ADNOC Gas secured a 25-year natural gas feedstock agreement valued at over $5 billion.
- Supply and offtake partners include ADNOC, Proman, EGA, Mitsubishi Corporation, Mitsui & Co., Sanmar Group, Tricon and Vinmar.
- TA'ZIZ Industrial Chemicals Zone targets 4.7 mtpa production by 2028 and includes a 20-year salt supply agreement with Sama Salt to support PVC.
Agreements and value
TA’ZIZ announced long-term offtake, feedstock and sales agreements across its chemicals portfolio valued at $28.5 billion (AED104.6 billion), with contract lengths ranging from five to 25 years and covering methanol, PVC, EDC, VCM, caustic soda, salt and natural gas.
Key counterparties
Counterparties include ADNOC, Proman, Emirates Global Aluminium (EGA), Mitsubishi Corporation, Mitsui & Co., Sanmar Group, Tricon and Vinmar for various offtake and feedstock arrangements.
Notable contracts
ADNOC Gas secured a 25‑year natural gas feedstock agreement for the TA’ZIZ methanol project valued at over $5 billion; EGA contracted roughly 200,000 dry metric tons per year of caustic soda for its Al Taweelah alumina refinery; and TA’ZIZ signed a 20‑year salt supply agreement with Sama Salt to support PVC production.
Production target and timing
The TA’ZIZ Industrial Chemicals Zone is targeted to produce 4.7 million tonnes per annum of chemicals once construction completes in 2028, with the agreements intended to secure local inputs and global offtake for large‑scale domestic chemical manufacturing.
Source: ADNOC