Ta’ziz awards USD 2 bn EPC contracts for chemicals project at Al Ruwais Industrial City

1

What we're tracking today

TODAY: Egypt, Jordan eye linking Risha gas field to Arab Gas Pipeline + Iraq orders Kurdish gov’t to transfer oil output to state-owned firm

Good morning, friends. It’s a relatively calm morning for logistics news in the region, with only Adipec bringing us some fresh agreements from Adnoc that are set to boost LNG exports and chemicals supply chains in the region. Plus: The UAE inked a trade agreement with Australia.

HAPPENING TODAY-

Adipec is on its final day today at Adnec Center in Abu Dhabi. The event — the biggest oil and gas forum in the world — brings together over 40 ministers and over 200 C-suite executives and technology leaders from the Middle East, Asia, Africa, Europe, and the Americas, focusing on innovation and partnerships to advance the energy transition.

WATCH THIS SPACE-

#1- Egypt + Jordan discuss connecting Risha gas field to Arab Gas Pipeline: Egypt’s Oil Minister Karim Badawi and Jordan’s Energy and Mineral Resources Minister Saleh Kharabsheh discussed the feasibility of linking Jordan's Risha gas field to the Arab Gas Pipeline with a 300 km connection, according to a statement.

#2- KRG ordered to transfer oil production operations over to Iraq’s SOMO: Iraq has ordered the Kurdistan Regional Government (KRG) to transfer its oil production to the State Organization for Marketing of Oil (SOMO) effective immediately, according to a statement. The Iraqi government will compensate the KRG for production and transportation costs at a price that will be determined by an international technical advisor within 60 days of the law coming into effect. It will also offer foreign oil firms operating in the region USD 16 per barrel in compensation.

REMEMBER- Oil exports to Turkey from Iraq’s northern autonomous region of Kurdistan were halted last year after a landmark decision by the International Chamber of Commerce deemed the transfers illegal and ordered Turkey to shell out USD 1.5 bn in damages to Baghdad. Attempts to resume exports failed due to conflicting demands from the parties involved.

#3- Egypt resumes USD access for car importers: The Central Bank of Egypt has instructed banks to begin processing car importers’ requests for USD-denominated letters of credit, ending a six-month halt, two sources familiar with the matter told EnterpriseAM. This policy shift comes as the CBE seeks to lift all remaining USD restrictions, with banks reportedly beginning to reach out to clients on Tuesday.

We had an inkling that this was coming: Earlier this week we heard that the government was loosening restrictions on bank financing for non-essential imports including vehicles, which have seen continued import restrictions. Import backlogs have seen auto sales in Egypt drop in September and August.

#4- MAFI granted a golden license in Egypt: Egypt’s Cabinet approved granting MAFI Agricultural Produce Industries a golden license for its agri-food industrial project in Sadat City, according to a statement. The project, which is expected to begin operations in March 2026 and will see investments of just over USD 180 mn, is expected to produce USD 200 mn worth of agri-food products annually during its first phase, and double that when its second phase is up and running, all of which will be exported.

MARKET WATCH-

#1- Oil prices inched up this morning after a sell-off triggered by the US elections and the prospects of tighter supply from Iran and Venezuela during Donald Trump’s presidency, Reuters reports. Brent crude futures rose 0.35% to USD 75.18 a barrel, while US West Texas Intermediate gained 0.22% to USD 71.85.

#2- Baltic index continues to ease: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — rose 1.6% yesterday to a two-week high after several weeks of falling. The capesize index gained 22 points, while the panamax index lost six points and the smaller supramax shed 18 points.

DATA POINT-

***YOU’RE READING EnterpriseAM Logistics, the essential MENA publication for senior execs who care about the industry that connects producers and retailers to global markets. We’re out Monday through Thursday by 9:15am in Cairo and Riyadh and 11:15am in the UAE.

EnterpriseAM Logistics is available without charge thanks to the generous support of our friends at Hassan Allam Utilities, Transmar, and AK-Ships.

Were you forwarded this email? Tap or click here to get your own copy of Enterprise Logistics.

Want to send us a story idea, request coverage, ask for a correction, or otherwise get in touch? Reach out to us on logistics@enterprisemea.com.

DID YOU KNOW that we also cover Egypt, Saudi Arabia, the UAE, and the MENA climate industry ?
***

CIRCLE YOUR CALENDAR-

Saudi Arabia will host the Saudi Airport Exhibition on Monday, 11 November and Tuesday, 12 November in Riyadh. The two-day exhibition will bring together global industry leaders to discuss the latest technologies around the world in the aviation industry. It looks to encourage discussion between Saudi aviation leaders and the global supply chain industry.

Bahrain will host The Bahrain International Airshow on Wednesday, 13 November and Friday, 15 November near Awali. The three-day event is bringing together over 180 participating companies from over 59 represented nations globally.

Egypt will host the Autotech Exhibition on Sunday, 17 November until Tuesday, 19 November in Cairo. The event will bring together prominent local and international companies to discuss and evaluate the latest developments and trends in the automotive aftermarket and feeder industries.

Check out our full calendar at the bottom of this email for a comprehensive listing of upcoming news events and news triggers.

Adnoc awards contracts for chemicals site at Al Ruwais, finalizes LNG agreement with Sefe

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.

A boon for exports: The specialized chemicals port and terminal will support exports from Ta'ziz's 1 mn tonnes per annum low-carbon ammonia production facility and its world-scale methanol plant in Ruwais, as well as the import of key materials.

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.

UAE and Australia ink trade agreement

The UAE and Australia signed an economic partnership agreement, marking Australia’s first trade agreement with a country in the Mena region, according to a Foreign Ministry statement and a statement by the Australian Agriculture Ministry. The partnership aims to increase non-oil bilateral trade to over USD 15 bn by 2032.

The agreement will eliminate tariffs on over 99% of Australian exports to the UAE — including significant agricultural products — and includes dedicated chapters on environmental protection, women's empowerment, sustainable agriculture, and animal welfare. The agreement also reduces Australian import tariffs on furniture, copper wire, glass containers, and plastic products from the UAE.

Background: This builds on existing economic relations and a trade agreement that was finalized in November, with bilateral non-oil trade reaching USD 2.3 bn in 1H 2024, marking a 10.1% y-o-y increase. The UAE is Australia’s largest trading partner in the Middle East and 20th globally, with the countries having committed a combined USD 14 bn to each other's economies.

Six further agreements were signed, including one to promote and protect investments and five MoUs on investment cooperation in sectors such as renewable energy, infrastructure development, data centers, artificial intelligence, minerals, mining, and food and agriculture.

Saudi Arabia + US to boost cargo transit

AVIATION-

Saudi Arabia + US look to boost cargo transit: Saudi Arabia and the US have signed an agreement to add an additional clause of operation to the existing 2013 US-Saudi Arabia Air Transport Agreement to expand the transportation of air cargo between the two countries, according to a statement. The amendment will allow Saudi airlines to transport cargo between the US and other countries without having to stop in the Kingdom, and vice versa for US carriers in Saudi Arabia.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

SHIPPING + MARITIME-

#2- Energy and marine services firm NMDC plans to acquire a GCC-based company by the end of this year, the company’s CEO Yasser Zaghloul told The National, without revealing further details. NMDC is also scanning global markets for potential acquisitions in fields related to the company’s portfolio, including marine, dredging, logistics, and construction sectors, Zaghloul said.

ICYMI- NMDC said recently that it was working on a GCC-based acquisition with details of the transaction set to be announced “soon.” The company is also eyeing developing new business units, including NMDC Construction and NMDC LNS.

OTHER STORIES WORTH KNOWING THIS MORNING-

JED welcomes first British Airways flight: King Abdulaziz International Airport (JED) has welcomed the first direct British Airways flight from London’s Heathrow Airport. The airline is operating six weekly flights between the two airports. (Statement)
Dubai Chamber opens Kazakhstan office: Dubai International Chamber has launched its representative office in Almaty, Kazakhstan to streamline trade and boost economic relationships between the two sides. (Wam)

Europe brace for new Trump-led trade era

Europe bracing for another Trump presidency: The EU is weighing options to appease incoming US President Donald Trump as it braces for US tariffs and other trade threats as well as difficult discussions on how to handle China, Reuters reports.

REMEMBER- Trump warned that the EU would have to “pay a big price” for not buying enough American exports. A second US presidential term for Trump could also usher in a 10% tariff on all imports into the US and a 50% tariff on goods from top trading partner China. The tariffs would likely spark retaliation from US trading partners — even political allies such as countries in Europe, Japan, South Korea, and India — who could place tariffs of their own on US imports.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

The expected impact: Major car producers Germany and Italy — the second largest EU exporter to the US — will likely be hit the hardest. Along with the direct impact of tariffs on its sluggish economy, the EU could suffer a second setback if Chinese producers, facing higher barriers to the US market, redirect more of their exports to Europe. In reaction to Trump's 2018 tariffs on EU steel, the EU implemented safeguard measures to restrict zero-tariff steel imports into its markets. However, these measures are set to expire in June 2026, with no possibility of extension under EU or WTO regulations.

Now what? The EU will seek to contact the future Trump administration before his inauguration in January and is already mulling ways of cooperation that could ease or remove the tariffs, including potentially ramping up imports of liquefied natural gas (LNG) from the US.

Going against China? Some EU diplomats propose that China, where US policy is expected to become more stringent, could be another area for collaboration. However, the EU's desire to adhere to global trade rules and its aim to "de-risk" rather than completely sever ties with China could make negotiations challenging.

Maersk orders new LNG containerships in China: Danish shipping giant AP Moller-Maersk has ordered 10 liquified natural gas (LNG) dual-fuel TEU containerships that will be manufactured at Yangzijiang Shipbuilding in China, Offshore Energy reports. The Neo panamax containerships will be delivered between 2027 and 2029.The vessels have a nominal capacity of 17k TEUs and a price tag of USD 202 mn each.

Background: Maersk announced in August that it is in the process of finalizing newbuilding orders and time-charter agreements for dual-fuel vessels to align with its planned fleet renewal rate of approximately 160k TEUs annually. The orders are anticipated to include 50-60 containerships, consisting of both owned and chartered dual-fuel vessels, totaling 800k TEUs.

OTHER STORIES WORTH KNOWING THIS MORNING-

Maersk + Syngenta extend 4PL partnership: Maersk has extended its fourth-party logistics (4PL) partnership with agriculture company Syngenta Crop Protection for an additional five years. (Statement)
EU to close trade agreement with Mercosur by year's end: The EU expects to conclude a trade agreement with South America’s Mercosur bloc by the end of the year, EU crisis management commissioner Janez Lenarcic told Reuters.

Calendar

NOVEMBER

11-12 November (Monday-Tuesday): World Advanced Manufacturing Logistics Summit & Expo, Riyadh, Saudi Arabia.

11-12 November (Monday-Tuesday): Saudi Airport Exhibition, Riyadh, Saudi Arabia.

11-14 November (Monday-Thursday): ADIPEC Maritime and Logistics Exhibition and Conference, Abu Dhabi, UAE.

13-15 November (Wednesday-Friday): The Bahrain International Airshow, Sakhir Airbase, Bahrain.

13-15 November (Wednesday-Friday): ITC North-South - New Horizons, Astrakhan, Russia

18-20 November (Monday-Wednesday): The Heavy Equipment and Truck Show, Damman, Saudi Arabia.

19-21 November (Tuesday-Thursday): Saudi International Maritime Forum, Dammam, Saudi Arabia.

18-19 November (Monday-Tuesday): G20 Summit, Rio de Janeiro, Brazil.

20-21 November (Wednesday-Thursday): Saudi Rail Exhibition, Riyadh, Saudi Arabia.

29 November (Friday): Egypt and Italy to launch a ro-ro shipping line connecting Damietta Port with Port of Trieste.

DECEMBER

2-3 December (Monday-Tuesday) Wings of Change Middle East, Riyadh, Saudi Arabia.

10-11 December (Tuesday-Wednesday): Rail Industry Summit, Casablanca, Morocco.

10-12 December (Tuesday-Thursday): Middle East Business Aviation, Dubai, UAE.

20 December (Wednesday): The Iran-Senegal Joint Economic Cooperation Commission, Dakar, Senegal.

EVENTS WITH NO SET DATE

IATA Annual General Meeting (AGM) and World Air Transport Summit, New Delhi, India.

1H 2024: Civil Construction subcontracts for construction firms in Oman for implementation of the Abu Dhabi - Suhar rail link to be announced.

2H 2024: Bahri’s barges for Saline Water Conversion Corporation (SWCC) to begin initial and commercial operation.

King Salman Energy Park is set to become operational.

The Cross-Border Digital Trade Forum, Dubai.

2025

2Q 2025: ICAO Facilitation Conference 2025 (FLAC 2025), Dohar, Qatar.

FEBRUARY

4-5 February (Tuesday-Wednesday): Seatrade Maritime Qatar, Doha, Qatar.

APRIL

16-17 April: Global Ports Forum, Dubai, UAE.

Mid-2025: Iraq will complete phase one of the construction of the Grand Faw Port.

DHL and Aramco’s logistics and procurement hub in Saudi Arabia will commence operations.

AD Ports-operated Safaga Port’s multi-purpose terminal will become operational.

Phase 3 of APM Terminals Tangier MedPort to be complete and operational.

1Q 2025: Sadr Park’s Logistics Center in Riyadh to be completed.

1Q 2025: Phase twoof Jafza Logistics Park to be completed.

NOVEMBER

4-6 November: The International Air Cargo Association TIACA’s Air Cargo Forum 2025, Abu Dhabi, UAE.

2026

2026 UNCTAD Global Supply Chains Forum, Saudi Arabia.

2027

4Q 2027: Oman’s Musandam Airport construction to be completed.

Sections

About

Privacy & Support

Get EnterpriseAM daily