UAE to get its first large-scale methanol production plant

Abu Dhabi Chemicals Derivatives Company (TA’ZIZ) has teamed up with global methanol producer Proman AG to develop the United Arab Emirates’ (UAE) first world-scale methanol production facility.

The parties have signed a shareholders agreement to develop the facility with an anticipated annual capacity of up to 1.8 million tons at the TA’ZIZ Industrial Chemicals Zone in Al Ruways Industrial City, Abu Dhabi.

Methanol production in the UAE is said to be in line with the Ministry of Industry and Advanced Technology’s mission to diversify the UAE’s economy and accelerate industrial development.

Growth of methanol is expected to be driven by emerging economies in Africa and Asia, while in the UAE it will support decreased reliance on imports, enabling local manufacturers to “Make it In the Emirates” and establish greater resiliency among domestic supply chains.

Khaleefa Yousef Al Mheiri, TA’ZIZ Acting Chief Executive Officer, said: “This agreement continues to build momentum at TA’ZIZ and advances our mission to diversify the UAE’s economy and accelerate industrial development.

“Our partnership with Proman underlines the UAE’s attractiveness as a destination for international partners and investors as we progress plans to produce methanol at world-scale in Al Ruways. New chemicals in the UAE will enable new local supply chains and support long-term industrial growth for Abu Dhabi’s private sector.”

Richard Brink, Managing Director Proman in the UAE, stated: “We welcome the shareholders agreement, which is a vital next step towards Abu Dhabi’s first world-scale methanol plant. As well as being Proman’s first investment in the UAE, we are working to ensure that this proposed project will be one of the most technologically advanced and low-emission natural gas-to-methanol facilities in the world. With growing global demand for methanol as a cleaner fuel, this agreement demonstrates the huge potential for the TA’ZIZ Industrial Chemicals Zone and Abu Dhabi’s evolving downstream industry.”

TA’ZIZ also signed a joint venture incorporation agreement with Reliance Industries Limited and Shaheen Chem Holdings Investments LLC for the development of a world-scale ethylene dichloride (EDC), chlor-alkali, polyvinyl chloride (PVC) production facility.

Fertiglobe, Mitsui & Co. and GS Energy Corporation are also partnering with TA’ZIZ to develop a world-scale low-carbon ammonia facility.

The total investment in the first phase of TA’ZIZ will be in excess of $5 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, by ADNOC and ADQ, TA’ZIZ is driving and enabling expansion of Al Ruways Industrial City, as well as Abu Dhabi’s wider chemicals, manufacturing and industrial sectors.