The Abu Dhabi National Oil Company (ADNOC) has signed a Memorandum of Understanding (MOU) with Alpha Dhabi Holding to jointly explore building a new chemical complex in the Ruwais area of Abu Dhabi, it is reported. The investment under review is reported at approximately $10 billion, with the two companies said to have launched a joint feasibility study.
The MOU is aimed at studying the feasibility of building new chemical production facilities within the Ruwais industrial zone, though the specific product mix, capacity, and process technology have not yet been disclosed. ADNOC has continued to expand its gas processing, petrochemical, and chemical value chain centered on the Ruwais area, and this MOU is reported to be an extension of that effort. Alpha Dhabi Holding, a diversified Abu Dhabi-based investment group, has reportedly been expanding its investments in the energy and industrial sectors.
The investment under review is reported at approximately $10 billion. However, this remains at the MOU stage for launching a joint feasibility study, and a binding final contract or Final Investment Decision (FID) has reportedly not yet been reached.
The move is reported to be part of ADNOC’s strategy to increase the share of its chemicals business within a portfolio historically centered on oil and gas, with the partnership with Alpha Dhabi Holding seen as a way to share investment risk.
The review of a new $10 billion chemical complex illustrates the continued expansion of Ruwais as a core petrochemical and chemical hub for Abu Dhabi. Should the feasibility study lead to future EPC (Engineering, Procurement and Construction) awards, it could translate into contract opportunities for major engineering firms.
The completion timing of the joint feasibility study, whether it leads to a Final Investment Decision, and whether the specific product mix, capacity, and technology licensor are confirmed warrant continued monitoring.