ADNOC

TA’ZIZ and Reliance sign shareholder Agreement for Ruwais Chemicals Project

ADNOC and Reliance sign new strategic agreement on Upstream collaboration and decarbonization of operations

Masdar and Reliance will discuss collaboration in new energies as UAE and India seek to grow their leadership positions in renewable energy and green hydrogen

To this end Abu Dhabi Chemicals Derivatives Company RSC (TA’ZIZ) and Reliance Industries Limited (RIL), recently signed a formal Shareholder Agreement for the TA’ZIZ EDC & PVC project, it was announced via a press communique.

Reliance is India’s largest diversified conglomerate and a strategic partner with Abu Dhabi National Oil Company (ADNOC) and ADQ, an Abu Dhabibased investment and holding company, in TA’ZIZ EDC & PVC, a world-scale chemicals development at the TA’ZIZ Industrial Chemicals Zone in Ruwais.

The TA’ZIZ EDC & PVC joint venture will construct and operate a Chlor-Alkali, Ethylene Dichloride (EDC) and Polyvinyl Chloride (PVC) production facility, with a total investment of over US$ 2bn (AED 7.34bn). These chemicals will be produced in the UAE for the first time, unlocking new revenue streams and opportunities for local manufacturers to ‘Make it in the Emirates’.

Official visit

The formal shareholder agreement was signed by senior executives during a visit of Mukesh Ambani, Chairman and Managing Director, Reliance, to ADNOC headquarters.

During the visit, Ambani met with HE Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, and discussed opportunities for partnership and growth in Upstream, new energies

HE Dr. Sultan Al Jaber and Mukesh Ambani at ADNOC HQ in Abu Dhabi.

and decarbonization across the hydrocarbon value chain, the press statement continued.

HE Dr. Al Jaber and Ambani exchanged a signed framework agreement between ADNOC and Reliance to explore collaboration in the exploration, development and production of conventional and unconventional resources in Abu Dhabi as well as in decarbonization of operations, including in carbon dioxide (CO2) sequestration.

“We are building on this partnership and the progress at TA’ZIZ to unlock more opportunities to drive the UAE’s industrial and manufacturing growth, while advancing cooperation on decarbonization, new energies and upstream production,” commented HE Dr. Al Jaber.

The TA’ZIZ EDC & PVC project is making solid progress towards the detailed design phase in advance of the Final Investment Decision (FID) which is expected to be taken later this year.

Joint Venture

“This joint venture is a testimony to the strong and growing ties between India and the UAE and will be a benchmark for more such projects built on strengths of the two nations,” remarked Ambani.

Ambani also met with Mohamed Jameel Al Ramahi, CEO, Masdar, to explore potential opportunities for collaboration in renewable energy and green hydrogen, both of which are key priorities for the UAE and India.

During his visit in Abu Dhabi, Ambani was also briefed on strong progress made at the TA’ZIZ Industrial Chemicals Zone. The development of TA’ZIZ continues at pace, supporting the UAE’s national strategy to empower its industrial sector, driving growth and diversification of the country’s economy for many years to come.

Chemicals is a priority sector for the UAE’s industrial growth strategy, championed by the Ministry of Industry and Advanced Technology. The chemicals set to be produced by the TA’ZIZ EDC and PVC joint venture with Reliance have a wide range of industrial applications, enabling local supply chains and meeting growing demand in key export markets, the press note concluded.

ADNOC L&S expands its shipping fleet with the acquisition of two new-build LNG vessels

Region’s largest shipping and integrated logistics company continues to deliver on its growth strategy

ADNOC Logistics & Services (ADNOC L&S), the shipping and maritime logistics arm of the Abu Dhabi National Oil Company (ADNOC) and the region’s largest shipping and integrated logistics company, recently announced the signing of a Ship Building Contract for the construction of two 175,000cbm LNG vessels that will join its fleet in 2025.

The purchase, part of the company’s broader growth and expansion strategy, further reinforces its position as the UAE’s leading shipping and maritime operator. The new LNG vessels will be crucial enablers of ADNOC’s 2030 growth strategy, supporting its existing LNG business as well as its ambitions to grow its liquefied natural gas (LNG) production capacity. They will be built at the Jiangnan Shipyard in China.

In 2020, ADNOC L&S started a strategic growth program to expand and diversify its shipping fleet and offer a broader service to its customers, while supporting and enabling the growth of ADNOC’s upstream production capacity and the expansion of its downstream and petrochemical operations.

ADNOC L&S has the largest and most diversified fleet of vessels within the Middle East and its trading fleet transports crude oil, refined products, dry bulk, containerized cargo, LPG, and LNG to global markets through its owned and chartered vessels.

Key enabler

“The expansion and modernization of our LNG fleet will be a key enabler of ADNOC L&S’ growth strategy. This acquisition helps future-proof our fleet with more sustainable, modern vessels capable of serving our customers for the next 25 years and deepens our partnership with Jiangnan Shipyard,” explained Captain Abdulkareem Al Masabi, CEO of ADNOC L&S.

“We are committed to delivering these vessels on time, with good quality and ensuring the highest possible customer satisfaction,” commented Lin Ou, Chairman, Jiangnan Shipyard.

The new-build LNG vessels, each with a capacity of 175,000m3, are significantly larger than the current ADNOC L&S fleet of LNG vessels which have a capacity of 137,000m3 each. Each of the new build vessels will carry enough LNG to power 45,000 homes for a year.

Acquisition

The acquisition of larger, more energy efficient vessels will allow ADNOC L&S to meet growing customer demand while improving the environmental footprint of its fleet.

Large Gas Carriers for AW Shipping, ANDOC L&S’ Joint Venture company with China’s Wanhua Chemical Group.

Over the past 24 months, ADNOC L&S acquired 16 deep sea vessels, including eight Very Large Crude Carriers in 2021, adding 16mn barrels of capacity, six product tankers, which expanded the product tanker fleet capacity to over 1mn MT in addition to five Very Large Gas Carriers for AW Shipping.