Post by : Badri Ariffin

During the Make it in the Emirates forum, TA’ZIZ unveiled long-term agreements amounting to $28.5 billion (AED104.6 billion), focusing on offtake, feedstock, and product sales as part of its expanding chemical lineup.

These contracts cover vital products, including methanol, polyvinyl chloride (PVC), ethylene dichloride (EDC), vinyl chloride monomer (VCM), caustic soda, salt, and natural gas. Lasting between five and 25 years, they aim to secure both a steady global demand and a reliable supply of local raw materials.

This initiative significantly boosts the UAE's capabilities in large-scale chemical manufacturing and fosters the creation of a fully integrated domestic chemicals ecosystem.

Notable partnerships include collaborations with ADNOC and Proman for methanol, Emirates Global Aluminium (EGA) for caustic soda, and international firms such as Mitsubishi Corporation, Mitsui & Co., Sanmar Group, Tricon Energy, and Vinmar International for various chemical offerings.

Mashal Saoud Al-Kindi, CEO of TA’ZIZ, emphasized that these agreements are pivotal in propelling the UAE’s industrial advancement. He stated that ensuring both demand and feedstock facilitates large-scale production, enhances supply chains, and generates enduring economic value and employment.

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

Moreover, ADNOC Gas has finalized a 25-year agreement valued at more than $5 billion (AED18.4 billion) to provide natural gas for the TA’ZIZ methanol initiative.

Additionally, a 20-year salt supply contract with Sama Salt supports operations at its PVC complex.

These agreements are poised to enrich local supply chains through the utilization of domestic resources, thereby enhancing industrial self-sufficiency in the UAE.

The TA’ZIZ Industrial Chemicals Zone is anticipated to produce 4.7 million tonnes per annum of chemicals upon completion in 2028, representing a considerable uplift for the nation's industrial sector.

#Global News #Business News #UAE News #Business & economy