Abu Dhabi Oil Gas 2024 Webinar Presentation

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www.meedprojects.

com
Abu Dhabi Oil and Gas 2024
Webinar presentation
Analysis of project market, current trends, future
trajectory, challenges and opportunities

06 May 2024, MEED Webinar


Indrajit Sen, Oil & Gas Editor, MEED
[email protected]
1
MENA oil, gas and chemical projects by value ($m)
Saudi Arabia has the largest share of all active oil, gas and chemical megaprojects, followed by Iraq and the UAE. Egypt is the
largest market in North Africa. The UAE and Qatar are the second and third largest markets in the GCC, respectively, after KSA

34834

30264

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22920
21800

17457

14060
11305 10962
8325 7769
6085

1585 1500
310

Algeria Bahrain Egypt Iran Iraq Jordan Kuwait Libya Morocco Oman Qatar Saudi Arabia Tunisia UAE 4
Source: MEED Projects
MENA oil, gas and chemical projects in different stages
The value of gas projects under execution is considerably larger than projects under execution in the oil and chemical sectors. When it comes to
planned projects, the value of gas projects also emerges as the largest segment, with oil following at second, indicating changing capex trends

MENA oil, gas and chemical projects under execution ($m) MENA oil, gas and chemical projects in pre-execution stages ($m)

www.meedprojects.com
54265, 18%

106615, 35% 125182, 29%


141562, 33%
Chemical Chemical
Gas Gas
Oil Oil

142979, 47%
166370, 38%

NEOM.com
5
Source: MEED Projects
Abu Dhabi oil, gas and chemical projects in different stages
The value of gas projects under execution is considerably larger than projects under execution in the oil and chemical sectors. When it comes to
planned projects, the value of petrochemical projects also emerges as the largest segment, with oil following at second

Abu Dhabi oil, gas and chemical projects under execution ($m) Abu Dhabi oil, gas and chemical projects in pre-execution stages ($m)

www.meedprojects.com
9732, 21%
14075, 30% 11175, 31%

15150, 41% Chemical


Chemical
Gas Gas

Oil Oil

23270, 49% 10115, 28%

NEOM.com
6
Source: MEED Projects
Abu Dhabi oil, gas and chemical project spending
Capital expenditure, mainly by Adnoc, on oil, gas and chemical projects since 2010, with 2023 being the best year on record so far

28881

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16942

8363 8197 8437 8009


7640
5762 5646

3210 3347
1204 1557 2269 2481

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 7
Source: MEED Projects; 2024 figure represents contract awards year-to-date
Abu Dhabi project spending
Oil projects have dominated spending in Abu Dhabi since 2010, followed by gas. Tecnimont has won the largest share of contracts over the past 16 months

Spending on oil gas and chemical projects in Abu Dhabi since 2010 ($m) Top contractors by value of work secured 2023-YTD ($m)
0 5,000 10,000

Maire Tecnimont
NMDC Energy
Chemical
Saipem
Gas

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Enppi
Oil Tecnicas Reunidas
15956, 14% China Petroleum Engineering &…
Galfar Engineering & Contracting
Petrofac
Target Engineering
Jan De Nul
57907, 52%
Descon Engineering
38082, 34% Al Nasr Contracting Company
Robt Stone LLC
CAT Group
Petrojet
Nantong Dingzhu Construction…
Matrix Construction
Hiap Seng
Intrakat SA NEOM.com
8

Source: MEED Projects


Abu Dhabi National Oil Company (Adnoc Group)
• Abu Dhabi National Oil Company (Adnoc Group ) is the largest industrial
entity in the UAE, wholly-owned by the Abu Dhabi government. Adnoc was
founded in 1971, although it began hydrocarbon exploration and production
activities in the 1930s.
• Adnoc Group today is a diversified energy company, with 16 subsidiary
companies that are engaged in various businesses, including production of
crude oil and natural gas, oil refining, gas processing, production of liquefied
natural gas (LNG), petrochemicals and fertilisers.
• Adnoc currently has the capacity to produce 4 million barrels a day (b/d) of

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crude oil and 10 billion standard cubic feet of ga a day (cf/d).
• The state enterprise has been set an objective of achieving an oil production
capacity of 5 million b/d by 2027 and become self-sufficient in gas
production by the end of this decade.
• In November 2022, Adnoc’s Board of Directors approved the company’s five-
year business plan and capital expenditure (capex) of AED550bn ($150bn)
for 2023-27. It was also at this meeting that the board brought forward
Adnoc’s 5 million b/d oil production target from 2030 to 2027.
• Adnoc spent close to $22bn on upstream projects in 2023, in what was a
record year for oil and gas project spending in the UAE, if not the best year
so far.
• Adnoc is expected to maintain robust spending on upstream projects this
year, if not match the 2023 level, as it strives to achieve its oil and gas
production targets.
• Adnoc is understood to have already spent more than $5.6bn so far this year
on projects deemed vital to reaching its crude production goal. 9
Source: MEED; MEED Projects
Adnoc Group downstream objectives
• Adnoc Refining, formerly known as Takreer, is the main crude oil refining
business of Adnoc Group, with the parent company owning the majority
65% stake. Italian energy major Eni and Austria’s OMV own 20% and
15% stakes in the company, respectively.
• Adnoc Refining has a total capacity of refining 922,000 b/d of crude oil and
condensates. The company produces over 40 million tonnes a year (t/y) of
refined products, such as liquefied petroleum gas, naphtha, gasoline, jet
fuel, gas oil, base oil, fuel oil and petrochemicals feedstocks such
as propylene. The company’s specialty products include carbon black and

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anode coke.
• Adnoc Refining intends to increase its refining capacity to about 1.5 million
b/d in the long-term through various greenfield and brownfield projects.
• Adnoc Gas is the main natural gas producing and processing subsidiary of
Adnoc Group. Adnoc Gas processes about 10 billion cf/d of gas across eight
onshore and offshore sites, including its Asab, Bab, Bu Hasa, Habshan and
Ruwais plants.
• The company also owns a 3,250km pipeline network across the UAE.
• Adnoc Gas produces about 6 million t/y of LNG from its facilities on Das
Island, located off the Abu Dhabi coast. The planned LNG facility in Ruwais
is projected to increase the company’s LNG production capacity by one and
a half times to 15 million t/y.
• The company also supplies 1 billion cubic feet of gas a day to the UAE’s
national grid and is a gas and LNG provider to other utility companies,
portfolio players and commodity traders overseas.
10
Source: MEED; MEED Projects
Adnoc Group petrochemical ambitions
• Borouge is Abu Dhabi’s main producer of petrochemicals. Adnoc Group
owns the majority 70.84% stake in Borouge, with Austrian energy company
Borealis holding a 19.16% stake. The remaining 10% of shares trade on ADX.
• In November 2021, Adnoc and Borealis signed the final investment decision
for a fourth expansion phase of the Borouge petrochemicals facility located
in Abu Dhabi’s Ruwais. The main EPC contracts for the estimated $6.2bn
Borouge 4 megaproject were awarded in December of that year.
• The upcoming Borouge 4 polyolefins complex will feature two polyethylene

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plants – each with a capacity of 700,000 t/y – cementing Abu Dhabi’s
position as a major producer of petrochemicals. The plants will be supplied
by an ethane cracker with a capacity of more than 1.5 million t/y of
ethylene, as well as associated ethylene derivatives.
• EPC works on the Borouge 4 megaproject has almost reached the 60% mark,
with the facility set to be commissioned in 2025.
• Separately, chemicals production is a priority target under Operation
300bn, the UAE’s industrial growth strategy. The programme is being
overseen by the Industry & Advanced Technology Ministry, which aims to
raise the UAE industrial sector’s contribution to the national GDP to
AED300bn ($81.7bn) by 2031.
• In line with this, Adnoc is overseeing the development of a sprawling
specialty chemicals production complex in Ruwais, that will mainly draw
feedstock from Borouge to produce a range of chemicals.
• T’aziz, a 60:40 joint venture of Adnoc and Abu Dhabi’s industrial holding
company ADQ, is leading the development of this chemicals production
zone in Abu Dhabi.
11
Source: MEED; MEED Projects
Adnoc Group decarbonisation initiatives
• Adnoc’s board of directors increased its budget allocation for investment in
decarbonisation projects, technologies and lower-carbon solutions to
$23bn. Last January, the board of directors allocated $15bn to Adnoc’s
decarbonisation budget.
• Adnoc Group has set a goal of achieving a carbon capture and storage
capacity of 10 million t/y by 2030. The company has also set an overall
target of attaining net-zero emissions by 2045 and reaching zero methane
emissions by 2030.
• Adnoc‘s decarbonisation projects, which will enable it to meet its target of a

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25% reduction in carbon intensity by 2030, include using clean energy to
meet 100% of its onshore grid electricity needs. It has been striving to
achieve this goal since the start of 2022 through a scheme known as Project
Wave.
• Through another estimated $3.8bn scheme, known as Project Lightning,
Adnoc intends to connect its offshore operations to the grid that, upon
completion, can reduce its offshore carbon footprint by up to 50%.
• In October, Adnoc Gas awarded UK-headquartered Petrofac the main
contract for a project worth $615m to develop a large carbon capture facility
at its Habshan gas processing complex in Abu Dhabi. The planned Habshan
carbon capture, use and storage facility will have the capacity to capture and
permanently store 1.5 million t/y of carbon dioxide within geological
formations deep underground.
• The project is expected to triple Adnoc’s carbon capture capacity to 2.3
million t/y, which is equivalent to removing over 500,000 gasoline-powered
cars from the road every year.
12
Source: MEED; MEED Projects
Megaprojects

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13
Major Adnoc projects under execution
Adnoc has awarded projects, worth a total of circa $34bn, in the last 16 months in order to achieve its oil, gas and petrochemical goals
Top 20 Abu Dhabi oil, gas and petrochemical projects under execution
Project Sector contract value ($m) Award year Completion year
Adnoc - Hail and Ghasha Sour Gas Development: Onshore Package Gas 8,700 2023 2028
Adnoc - Hail and Ghasha Sour Gas Development: Offshore Package Gas 8,200 2023 2027
Adnoc - Maximizing Ethane Recovery And Monetisation (MERAM) Chemical 3,600 2023 2026
Adnoc - West To East Pipeline Oil 2,400 2024 2026
Taziz, Fertiglobe, GS Energy, Mitsui - Ruwais Blue Ammonia Plant Chemical 1,496 2023 2026

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Adnoc Onshore - Bu Hasa Integrated Oil Field Development Oil 1,400 2018 2024
Borouge - Borouge 4 Petrochemical Complex: Mixed Feed Cracker Chemical 1,264 2021 2025
Borouge - Borouge 4 Petrochemical Complex: Utilities & Offsites Package Chemical 1,200 2021 2025
Borouge - Borouge 4 Petrochemical Complex: Polymers Production Unit Chemical 1,080 2021 2025
Adnoc Offshore - Reclamation and Marine Works at G Greenfield Island Oil 975 2023 2026

Adnoc - North West Development: Dalma Field: Package B Gas 950 2021 2025

Adnoc Offshore - Umm Shaif Field Long Term Development Plan: Phase 1 Oil 946 2022 2025

Adnoc - Integrated Gas Development Expansion (IGD-E2) Gas 860 2018 2025

Adnoc Offshore - UZ1000 Expansion: Development of Surface Facilities Oil 825 2024 2026

Adnoc Onshore - Flowlines & Wellhead Tie-In Works: Asab & Sahil: Package 3 Oil 790 2024 2027

Adnoc Onshore - Flowline & Wellhead Tie-In Works: SQM (Package 4) Oil 760 2024 2027
Adnoc - ESTIDAMA: New Compressor Plant at Habshan Gas Compressor Plant Gas 700 2023 2025
Adnoc - Habshan Upper Recovery & Lekhwair +20 MBD Project Gas 653 2024 2026
Adnoc - Habshan Carbon Capture Utilisation and Storage (CCUS) Gas 615 2023 2026 NEOM.com

Adnoc - ESTIDAMA: New Pipeline from Habshan Plant to New HGCP Gas 614 2023 2025 14
Source: MEED Projects
Hail and Ghasha megaproject
• The Hail and Ghasha fields, along with the Hair Dalma, Satah, Bu Haseer,
Nasr, Sarb, Shuwaihat and Mubarraz fields, are located in Abu Dhabi’s
offshore Ghasha concession.
• Adnoc holds the majority 55% stake in the Ghasha concession. The other
stakeholders are Italian energy major Eni with 25%, Germany’s Wintershall
Dea with 10% and Austria’s OMV and Russia’s Lukoil, each with 5%.
• Adnoc plans to produce more than 1.5 billion cf/d of sour gas from the
Ghasha concession by the end of this decade, which broadly comprises the

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objective of the Hail and Ghasha megaproject. This target is aligned with the
company’s goal of achieving gas self-sufficiency for the UAE by 2030.
• Adnoc and its partners in the Ghasha concession dominated spending in
2023, awarding contracts worth $16.94bn in early October for EPC works on
the Hail and Ghasha sour gas production project.
• A consortium of Abu Dhabi’s NMDC Energy and Italian contractor Saipem
was awarded the project’s offshore EPC package. Its value is $8.2bn, with
Saipem declaring its share to be worth $4.1bn. The scope of work broadly
involves the EPC of offshore facilities, including facilities on artificial islands
and subsea pipelines.
• Italy-headquartered Tecnimont was awarded the onshore EPC contract. The
$8.74bn contract relates to the EPC of onshore facilities, including carbon
dioxide (CO2) and sulphur recovery and handling.
• The investment represents the largest-ever capex on a single oil and gas
project in the UAE, and is a giant leap for the country in its goal of
becoming self-sufficient in gas. As such, the project investment is also having
a galvanising, trickle-down effect on the wider UAE oil and gas supply chain.
15
Source: MEED; MEED Projects
Adnoc Gas projects
• The biggest EPC contract award last year on a downstream project in Abu
Dhabi was worth an estimated $3.6bn and was awarded by Adnoc Gas for its
project to maximise ethane recovery and monetisation (Meram).
• A consortium of Abu Dhabi’s NMDC Energy and Spanish contractor Tecnicas
Reunidas won the main EPC contract for Project Meram in August 2023.
• The scheme aims to increase ethane extraction by 35%-40% from Adnoc
Gas’s existing onshore facilities in the Habshan gas processing complex by
constructing new gas processing facilities. It also aims to unlock further

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value from existing feedstock and deliver it to Ruwais via a 120-kilometre
natural gas liquids pipeline.
• Adnoc Gas is also making progress with the Estidama project, which will
enhance Adnoc’s sales gas pipeline network across the UAE. The project will
cater to rising demand for gas from industrial consumers.
• EPC works on the estimated $2bn-plus Estidama project have been divided
into seven packages. In July 2023, Adnoc Gas awarded the EPC contract for
package 2, estimated to be worth $720m, to Petrofac, and package 3, valued
at $630m, was won by consortium of NMDC Energy and Lebanon’s CAT
Group. Abu Dhabi-based contractor Integrated Specialised General
Contracting Company (Iscco) had won package 1 of the project, which is
understood to have a contract value of $18m.
• Meanwhile, Adnoc Gas has received interest from contractors for a new
pipeline it intends to build to transport gas as feedstock from its Habshan
gas processing complex in Abu Dhabi to its planned LNG terminal in Ruwais.
• The proposed pipeline will cover about 190km and be built in two sections.
This constitutes package 8 of the Estidama project.
16
Source: MEED; MEED Projects
Upper Zakum offshore oilfield expansion
• Located 84km offshore in Abu Dhabi, Upper Zakum is the world’s second-
largest offshore field and fourth-largest oil field. Adnoc Offshore initiated
the UZ1000 project in 2019, aiming to raise Upper Zakum’s oil production
capacity to 1 million b/d by 2024. The goal was later increased to 1.2
million b/d, and the project name changed to UZ1.2MMBD.
• Spanish contractor Tecnicas Reunidas was awarded the contract for the
front-end engineering and design works on the UZ1.2MMBD project in
2019. UK-headquartered Wood Group was appointed as the project
management consultant for the EPC phase.

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• Adnoc Offshore awarded Abu Dhabi-based Target Engineering
Construction Company the main EPC contract for the UZ1.2MMBD project
in mid-March. The value of the EPC contract for the project is estimated to
be $825m.
• The main scope of the project involves EPC of several surface facilities and
plants at the Upper Zakum offshore development’s four main artificial
islands of Al Ghallan, Umm Al Anbar, Ettouk and Asseifiya – also known as
Central Island, West Island, North Island and South Island, respectively.
• Adnoc Offshore awarded EPC contracts for the previous Upper Zakum field
expansion phase, called UZ750 project in 2012 and early 2013.
• The $817m first package was awarded to a consortium of Abu
Dhabi’s National Petroleum Construction Company and France-based
Technip Energies. Package 2, the project’s largest EPC package, worth
$3.7bn, was awarded to a consortium of Petrofac and South Korea’s
Daewoo Shipbuilding & Engineering.
• EPC work on UZ750 began in 2014 and was completed in 2022.
17
Source: MEED; MEED Projects
Major planned Adnoc projects
The Abu Dhabi energy giant is set to award key projects this year and in 2025 in order to achieve its oil, gas and petrochemical goals
Top 20 Abu Dhabi oil, gas and petrochemical projects in pre-execution stages
Project Industry Net project value ($m) Project status Expected award year
Adnoc - Ruwais LNG Terminal Project Gas 5,200 Bid evaluation 2024
Taziz - Taziz Industrial Chemicals Zone - Phase II Chemical 5,000 Study 2025
Adnoc Refining – Naphtha upgrade project Chemical 2,500 Feed 2024
Adnoc Offshore - Lower Zakum Long-Term Development Plan: Phase 2 Oil 2,000 Bid evaluation 2024
Adnoc Offshore - Umm Shaif Field Long-Term Development Plan: Phase 2 Oil 2,000 Main contract Bid 2024

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Adnoc Offshore - Lower Zakum Long-Term Development Plan: Phase-3 Oil 2,000 Study 2025
Shaheen/Taziz/RIL - Taziz: Chlor-Alkali, EDC and PVC Production Facility Chemical 2,000 Study 2025
Adnoc / ENEOS Corp/ Mitsui - Blue Hydrogen and MCH Plant: Phase 2 Chemical 1,500 Study 2025
Adnoc/Total/PetroChina/ENI - Umm Shaif Gas Cap Condensate Development: Phase 1 Gas 1,500 Bid evaluation 2024
Taziz - Maleic Anhydride Production Facility Chemical 1,000 Study 2025
Taziz - Isopropyl Alcohol Production Facility Chemical 1,000 Study 2025
Adnoc Offshore - Abu Dhabi Das Island Crude Oil Tank Farm Oil 1,000 Feed 2024
Main contract
Adnoc - ESTIDAMA: LNG Transmission Pipeline Project: Package 8 Gas 700 2025
prequalification
Taziz/ VTTI - Project Landing Chemical 600 Bid evaluation 2024

Adnoc - Well Digitalization for Bab, Bu Hasa & South East Project Gas 500 Main contract Bid 2024
Adnoc - LNG 2.0 Project Chemical 500 Bid evaluation 2024
Adnoc/ ENEOS Corp/ Mitsui - Blue Hydrogen and methylcyclohexane plant Chemical 500 Study 2025
Al Dhafra Petroleum - Haliba Oil Field Development: Phase 2 Oil 500 Bid evaluation 2024
Main contract
Adnoc Offshore – Upper Zakum 1.2MMBD expansion: Subsea pipelines Oil 500 2024 NEOM.com
prequalification
Adnoc - Sulphur Handling Facilities Expansion (SHT-1) at Ruwais Gas 400 Main contract Bid 2024 18
Source: MEED Projects
Ruwais LNG project
• In March, Adnoc issued a limited notice to proceed to a consortium of
contractors for early EPC works on the Ruwais LNG terminal project. The
limited notice to proceed was awarded to a consortium led by France’s
Technip Energies, consisting of Japan-based JGC Corporation and Abu
Dhabi-owned NMDC Energy.
• The planned LNG export terminal is to be built in Ruwais Industrial City in
Abu Dhabi, and will have the capacity to produce about 9.6 million t/y of
LNG from two processing trains, each with a capacity of 4.8 million t/y.

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The facility, to be operated by Adnoc Group subsidiary Adnoc Gas, will ship
LNG mainly to key Asian markets, such as Pakistan, India, China, South
Korea and Japan.
• The overall value of the export terminal project is estimated to be $5.2bn.
• Adnoc is yet to reach a final investment decision (FID) on the Ruwais
export terminal project. It is expected to issue the full EPC contracts for the
project in June.
• Adnoc Gas originally planned to build the LNG terminal in the UAE emirate
of Fujairah, which sits outside the Strait of Hormuz on the coast of the Gulf
of Oman. In May 2023, however, the company announced that it was
shifting the project location from Fujairah to Ruwais, Abu Dhabi.
• The Ruwais LNG project will feature process units, storage tanks, an export
jetty for loading cargoes and LNG bunkering, utilities, flare handling
systems and associated buildings. The project also requires designs for
electric-powered rotary equipment and compressors instead of gas-fired
units.
19
Source: MEED; MEED Projects
Lower Zakum offshore oilfield expansion
• Contractors are preparing bids for a major project to boost oil production
at the Lower Zakum offshore hydrocarbons concession in Abu Dhabi.
• The Lower Zakum hydrocarbons zone is 65 kilometres northwest of Abu
Dhabi in the Gulf’s waters. Adnoc Offshore holds the majority 60% stake in
the Lower Zakum asset. Foreign partners include an Indian consortium of
companies led by ONGC Videsh (10%), Japan’s Inpex Corporation (10%),
China National Petroleum Corporation (10%), Italy’s Eni (5%) and France’s
TotalEnergies (5%).

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Adnoc Offshore’s larger, longer-term objective is to raise the asset’s output
capacity to 520,000 b/d by 2027 and maintain that level until 2034. This
strategic goal will be accomplished through the Lower Zakum Long-Term
Development Plan (LTDP-1) project.
• Adnoc Offshore issued the main EPC tender for the multibillion-dollar
Lower Zakum LTDP-1 project in March. Contractors invited to bid have until
the end of July to submit technical bids for the project, while commercial
bids are due in September.
• Adnoc Offshore intends to award EPC contracts for the Lower Zakum LTDP-
1 project by the end of the year.
• Adnoc Offshore and its partners in the Lower Zakum concession intend to
sustain oil production from the asset at its current level of 450,000 barrels
a day (b/d) in the short-term, and then increase output to 470,000 b/d.
• The target will be achieved through the Lower Zakum early production
scheme 2 (EPS 2) and Proved Developed Producing (PDP) project.
Contractors submitted commercial bids for EPC works on the Lower Zakum
EPS 2/PDP project in December.
20
Source: MEED; MEED Projects
T’aziz industrial chemicals zone
• Investors in the T’aziz petrochemicals derivatives-producing industrial Anchor product End-use
complex in Ruwais are pushing ahead with their projects. T’aziz is Chlor-alkali Water treatment, metallurgy
overseeing the development of the industrial complex as the anchor and textiles
developer.
• A JV of UAE-based Fertiglobe, South Korea’s GS Energy and Japanese
investment firm Mitsui has awarded Italian contractor Tecnimont the main Ethylene dichloride Housing, infrastructure and
EPC contract, estimated to be worth $1.5bn, for its planned blue ammonia consumer goods
project in the T’aziz Industrial Chemicals Zone. The JV has appointed KBR to
provide the technology license, basic engineering design, proprietary

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equipment and catalyst for the low-carbon ammonia plant, which will have Maleic anhydride Piping, construction and
a capacity of 1 million t/y. heavy transport
• Further spending on projects in the T’aziz master development is set to
drive capex on downstream and chemicals projects in the UAE this year. Methanol Energy, consumer goods and
• India’s Reliance Industries has partnered with T’aziz and Abu Dhabi-based pharmaceuticals
Shaheen Chem Holdings Investment to invest $2bn in developing three
chemicals plants that will produce 940,000 t/y of chlor-alkali, 1.1 million
t/y of ethylene dichloride and 360,000 t/y of polyvinyl chloride. Reliance is Blue ammonia Agriculture, apparel and
expected to award EPC contracts for all three facilities later this year. energy
• Swiss firm Proman has committed to building the UAE’s first methanol
plant at T’aziz, with a planned production capacity of 1.8 million t/y. The Isopropyl alcohol Healthcare and cosmetics
Proman-T’aziz JV has issued the main tender for the project and
contractors are preparing technical bids. Elastomers Automobiles, adhesives,
• T’aziz is also understood to be gearing up for a second phase to more than food production and storage
double the categories of chemicals produced at the derivatives hub.

21
Source: MEED; MEED Projects

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