ADNOC and ADQ launched the next phase of growth at the TA’ZIZ Industrial Chemicals Zone

Abu Dhabi National Oil Company (ADNOC) and ADQ, the majority shareholders in TA’ZIZ, launched the next phase of growth at the TA’ZIZ Industrial Chemicals Zone, in Al Ruways Industrial City, which will more than double the number of chemicals produced at the industrial hub, said Hydrocarbonprocessing.

The centerpiece of the expansion will be a new world-scale, low-carbon footprint steam cracker to supply feedstocks for the various downstream production units, bringing multiple new product value chains to the UAE for the first time. The project is in the feasibility study phase, with the design phase set to commence in Q1 2023.

The first phase of TA’ZIZ growth continues to progress, with a new strategic agreement signed at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) to advance the development of world-scale facilities for the production of ethylene dichloride (EDC) and chlor-alkali, polyvinyl chloride (PVC). Site preparation at TA’ZIZ is underway and final investment decisions on the first phase of projects are expected before year end.

In line with the UAE Net Zero by 2050 Strategic Initiative, TA’ZIZ will leverage low carbon electricity sources such as cogeneration from the on-site utility facility, grid power from nuclear and solar clean energy and use best available technology to drive manufacturing growth with lower carbon emissions.

Khaleefa Yousef Al Mheiri, TA’ZIZ Acting Chief Executive Officer, said: “TA’ZIZ is a critical enabler of the UAE’s industrial development and manufacturing growth ambitions. Following strong demand from partners and investors for the first phase of world-scale growth at TA’ZIZ, and capitalizing on growing global demand for chemicals, we are expediting plans for the next phase of expansion of our chemicals production.

“In line with our chemicals’ growth strategy, this major project supports our wise leadership’s vision to harness our country’s vast natural resources, while responding to the growing global demand for chemicals. By leveraging clean grid power and gas-based feedstocks, we are building new low-carbon industrial value chains that will further grow, diversify and future-proof our economy, as well as create opportunities to support the private sector.”

During ADIPEC, the TA’ZIZ EDC/PVC partners, TA’ZIZ, Reliance Industries and Shaheen signed a Joint Venture incorporation agreement for the development of a world-scale ethylene dichloride (EDC), chlor-alkali, polyvinyl chloride (PVC) production facility, with a total investment in excess of USD2 B.

Fertiglobe, Mitsui & Co., Ltd (Mitsui) and GS Energy Corporation (GS Energy) are also partnering with TA’ZIZ to develop a world-scale low-carbon ammonia facility while TA’ZIZ and Proman are focused on progressing a methanol facility, both at the TA’ZIZ Industrial Chemicals Zone.

Separately, the Zone’s utility facilities, that will provide power, steam, cooling, demineralized and wastewater services will be jointly developed by ADNOC and TAQA. And ADNOC L&S and AD Ports Group will develop a liquids terminal and logistics facility with an international partner, VTTI B.V., which will include construction of a new world-class port. The Engineering, Procurement and Construction (EPC) contract for the utility facilities and the EPC contract for the logistics facilities marine works have both been tendered, with EPC awards expected shortly.

The total investment in the first phase of TA’ZIZ will be in excess of USD5 billion (AED18 billion), with most of the chemicals produced in the UAE for the first time. All agreements are subject to regulatory approvals. Launched at the end of 2020, TA’ZIZ is driving and enabling expansion of the Al Ruways Industrial City, as well as Abu Dhabi’s wider chemicals, manufacturing and industrial sectors.

We remind, Abu Dhabi National Oil Company (ADNOC) and GAIL (India) Limited signed a Memorandum of Understanding to explore collaboration opportunities in liquefied natural gas (LNG) supply and decarbonisation, including short and long term LNG sales agreements. The agreement also includes potential optimization of LNG trading activities, the review of joint equity investments in renewables and the monitoring of greenhouse gasses for LNG cargoes, to support low carbon LNG supplies.
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LyondellBasell announced that its leading polypropylene (PP) technology has been selected by Stavian Quang Yen Petrochemical, Ltd. (Stavian) for a new world scale production facility, said the company.

The facility will include a 600 kiloton per annum (KTA) polypropylene plant using LyondellBasell’s Spheripol technology. The facility will be built in Quang Ninh Province, Vietnam.

“We are delighted Stavian Quang Yen Petrochemical selected LyondellBasell as its polypropylene licensor for their first polyolefin facility,” said Neil Nadalin, director of licensing at LyondellBasell. Nadalin added, “The selection of the Spheripol process will enable Stavian to produce benchmark polypropylene resins in a state-of-the-art process technology, allowing them to best serve the fast growing Vietnamese polyolefin market."

Mr. Bui Viet Ha, Project Director at Stavian Quang Yen Petrochemical stated: “Working with the leading polypropylene technology licensor gives us enormous confidence that we will be able to deliver timely large scale quality resins to the domestic market. The excellent reputation of LyondellBasell and its solid licensing record and experience as well as an extensive product portfolio lead us to choose LyondellBasell as the PP licensor for our project."

Spheripol is the leading PP process with more than 30 million tons of licensed capacity. The latest fifth generation Spheripol technology includes process improvements that further maximize operational efficiency. The plant will commence operation using the LyondellBasell Avant ZN catalyst.

New licensees take advantage of the LyondellBasell in-house expertise of continuous production improvement, sustainable product development and catalyst knowhow, by optionally joining our Technical Service program.

We remind, LyondellBasell and Shakti Plastic Industries, India's largest plastic scrap recycler and waste collection company, have signed a Memorandum of Understanding (MoU) to form a joint venture to build and operate a fully-automated, mechanical recycling plant in India.

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Solvay SA, a Belgian chemical firm, on Thursday posted a surge in earnings for the third-quarter, helped by increased revenue driven by higher prices and sustained demand, said the company.

For the third-quarter, the company posted an underlying net profit of 509 million euros, higher than last year's 273 million euros.

Underlying EBITDA was at 917 million euros as against 599 million euros of last year. This increase was mainly driven by higher pricing which overcame the significant inflationary costs in the quarter.

Net sales were 3.609 billion euros, versus 2.573 billion euros, posted for the third-quarter of 2021.

As per MRC, Solvay is partnering with two companies to collect and re-use the limestone residues from its soda ash production in Rosignano, furthering the company’s commitment to continually optimize the efficiency and sustainability of its operations. Pending further tests, the new partnerships could accelerate the decrease of limestone residues released into the sea, building upon the action plan announced in September to invest in new technical solutions at the site.
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Celanese Corp. (CE) reported a profit for third quarter that decreased from last year and missed the Street estimates, said the company.

The company's bottom line totaled USD191 million, or USD1.75 per share. This compares with USD506 million, or USD4.56 per share, in last year's third quarter.

Excluding items, Celanese Corp. reported adjusted earnings of USD430 million or USD3.94 per share for the period.

Analysts on average had expected the company to earn USD3.98 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

The company's revenue for the quarter rose 1.3% to USD2.30 billion from USD2.27 billion last year.

We remind, Celanese has completed the USD11bn acquisition of DuPont’s Mobility & Materials (M&M) business. With the acquisition, announced in February 2022, Celanese obtains a broad portfolio of engineered thermoplastics and elastomers, brands and intellectual property, global production assets, and a “world-class organisation”, it said.

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INEOS Europe AG and Pacific Gas (Hong Kong) Holdings Co., Ltd, have signed long-term time charter agreements for four 99,000 cbm (cubic metre) VLECs (Very Large Ethane Carriers), said the company.

The deal will bring INEOS’ ethane fleet to 16 vessels, with eight VLEC and eight Dragon class ethane carriers. With these agreements, INEOS will have a total of six VLECs under time charter with Pacific Gas.

Several high profile dignitaries attended the signing ceremony, including: Jiang Guodong, Secretary of the Party Committee and Chairman of the Shandong Ocean Group; Yang Jincheng, General Manager and Deputy Secretary of the Party Group of CSSC; Xu Peilin, Vice President of INEOS Olefins and Polymers Asia; Wang Peng, President and Deputy Secretary of the Party Committee of SPDB Financial Leasing; Zhu Zhiqiang, General Manager of Shenzhen Capital Operation Group and Chairman of CIMC Leasing; and Zhang Lianhuai, President of CMB Leasing.

David Thompson, CEO of INEOS Trading & Shipping, said: “Earlier this year, INEOS and Pacific Gas launched the two largest VLECs in the world: the Pacific INEOS Belstaff, and the Pacific INEOS Grenadier. Today’s signing marks the next stage of our cooperation with Pacific Gas, and we look forward to working with them and the other valuable stakeholders in this exciting project."

Chairman Jiang Guodong said “This cooperation benefits from the mutual trust and support of all parties in the project. All parties will take this opportunity to work together and complement each other's advantages to create a new win-win cooperation in future."

The signing of the long-term time charter agreements for four 99,000 cubic meter VLEC vessels will take Pacific Gas’ ethane carrying capacity to the largest in the world.

We remind, INEOS O&P Europe has announced today a EUR30 MM investment in the conversion of its plant in Lillo, at the Port of Antwerp, to enable its existing capacity to produce either monomodal or bi-modal grades of high-density polyethylene (HDPE). This will allow INEOS to meet the strong demand for durable high-end applications such as cable ducts and pipes used to transport green energy sources such as renewable power and hydrogen, whilst enabling the business to follow market trends as society reduces single use packaging.
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