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On the third day of Adipec, Adnoc continued to lead headlines, signing a series of agreements with major companies to ramp up its production of petrochemicals and accelerate the use of AI in its operations. We have a rundown of the agreements below.
PETCHEMS-
Ta’ziz inks AED 7.34 bn contracts to expand Al Ruwais infrastructure: Ta’ziz, a JV between the Abu Dhabi National Oil Company (Adnoc) and ADQ, awarded three engineering, procurement, and construction (EPC) contracts worth USD 2 bn (AED 7.34 bn) for infrastructure development at its chemicals and transition fuels site in Al Ruwais Industrial City, Abu Dhabi, according to an Adnoc statement.
The contracts:
- NMDC Group will develop a USD 300 mn chemicals port, facilitating exports of chemicals and transition fuels like low-carbon ammonia and methanol and securing operational connectivity to regional and global markets. The project is expected to be completed within 25 months, according to a bourse disclosure (pdf) ;
- Rotary Engineering’s Abu Dhabi division and Advario secured a chemicals terminal contract, covering building storage facilities, pipelines, and liquid product storage;
- Al Geemi Contracting is responsible for developing site infrastructure, including internal roads, security fencing and buildings, and utilities like power, steam, cooling water, and water.
A “significant” portion of the value of the EPCs will be injected back into the UAE economy under the national in-country value (ICV) program, aiming to support growth in the Al Dhafra region. The ICV program rewards companies that prioritize localizing supply chains and attracting foreign investments.
Background: Adnoc and ADQ established their joint venture (JV) Ta’ziz in November 2020 to propel industrial project development within the planned Ruwais Derivatives Park. The JV’s first phase selected potential investment projects exceeding USD 5 bn (AED 18 bn).
ICYMI- These aren’t the first EPC contracts awarded for Al Ruwais: In June, Adnoc handed out USD 5.5 bn in EPC contracts to a JV between engineering companies NMDC Energy, Technip Energies and JGC Corporation, for its LNG project in Al Ruwais.
About the site: The Al Ruwais 17 sqkm facility will produce caustic soda, ethylene dichloride, vinyl chloride monomer, polyvinyl chloride, low-carbon ammonia, and methanol, many of which will be manufactured in the UAE for the first time. Production is scheduled to start in 2027, with a target of 4.7 mn tonnes per year by 2028.
LNG EXPORTS-
Adnoc finalizes first long-term LNG agreement with SEFE subsidiary: Adnoc signed a 15-year sales and purchase agreement (SPA) with Sefe Marketing & Trading Singapore, a subsidiary of Germany’s state-owned energy firm Securing Energy for Europe, to supply it with 1 mn tonnes of liquefied natural gas (LNG) per year from its LNG project in Al Ruwais, according to a statement. Deliveries from the project are set to begin in 2028.
Background: Adnoc and SEFE signed the preliminary agreement for the transaction in March, subject to receiving regulatory approval and the companies reaching a definitive SPA.
ICYMI- Al Ruwais has inked offtake agreements for 70% of its total production capacity, including a 15-year agreement with China’s ENN Natural Gas to deliver some 1 mn tonnes of LNG annually from the new plant, and a 15-year agreement with German energy giant Energie Baden-Württemberg to supply it with 0.6 mn tonnes of LNG annually. Adnoc also signed long-term LNG supply agreements to deliver 1.6 mn tonnes per year from the new plant, with 1 mn metric tonnes to be supplied to Shell and 0.6 mn tons to be supplied to Mitsui.
MAPPING-
Adnoc awarded a contract valued at up to AED 1.79 bn to BGP, a subsidiary of China National Petroleum Company, to expand its ongoing 3D seismic survey in Abu Dhabi, according to a statement. The contract aims to accelerate data interpretation using AI in a bid to identify additional oil and gas resources in Adnoc’s onshore fields. Over 70% of its value will be reinvested into the national economy through Adnoc’s ICV program.
About the survey: The seismic survey project was launched in 2018 to provide high-resolution data on the region’s geological structure. It is the world’s largest continuous 3D seismic survey, spanning 85k sqkm across onshore and offshore areas in Abu Dhabi.
