The Abu Dhabi National Oil Company (ADNOC) and ADQ have announced forming a joint venture to fund the development of industrial projects within the planned Ruwais Derivatives Park.
The joint venture will be a new investment platform to finance and oversee the projects at the derivatives facility.
Ruwais Derivatives Park a key enabler of ADNOC Downstream’s 2030 smart growth strategy and the UAE’s chemicals and industrial growth strategy.
Launched at ADNOC’s Downstream Investment Forum in 2018, ADNOC downstream’s growth strategy is aimed at transforming the Ruwais industrial complex into a globally competitive chemicals cluster.
The joint venture will be 60% owned by ADNOC and the remaining stake will be held by ADQ.
The two companies will jointly evaluate and invest in anchor chemicals projects.
ADQ CEO Mohamed Hassan Alsuwaidi said: “By partnering with ADNOC to faciliate the development of the investment platform in Ruwais Derivatives Park, we will play a key role, together with the public and private sectors, in providing essential infrastructure development services.
“At ADQ, we are driving value creation and helping to build a prosperous economy for the benefit of Abu Dhabi through our diverse portfolio of the emirate’s leading entities such as Abu Dhabi Ports, Abu Dhabi National Energy Company (TAQA), Etihad Rail, Emirates Steel, DUCAB and Arkan.”
Following the receipt of required approvals, the joint venture will be incorporated in Abu Dhabi Global Markets.
A feasability study will be carried out by the joint venture partners to further develop identified projects in Ruwais.
The joint venture is expected to announce the results of this study before the end of 2020, including specific details on its selected target projects.
Last month, ADNOC announced the sale of a 49% stake in its gas pipeline assets for over $10.1bn.