The partnership with Proman will enable TAZIZ to construct a 1.8 million tons per annum methanol production facility at the TA’ZIZ Industrial Chemicals Zone in Al Ruways Industrial City, Abu Dhabi
Abu Dhabi Chemicals Derivatives Company (TA’ZIZ) and methanol producer Proman, have signed an agreement to develop the first world-scale methanol production facility in UAE.
The new methanol unit will be constructed at the TA’ZIZ Industrial Chemicals Zone in Al Ruways Industrial City, Abu Dhabi.
The facility is expected to have an annual capacity of up to 1.8 million tons and will meet growing domestic and international demand for this clean and versatile chemical commodity.
Methanol has broad applications, including in fuels, solvents, pharmaceuticals, and construction materials and is recently gaining popularity as a low-emission fuel.
TA’ZIZ acting chief executive officer Khaleefa Yousef Al Mheiri 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.”
Formed by ADNOC and ADQ, TA’ZIZ is said to drive and expand Al Ruways Industrial City, along with Abu Dhabi’s wider chemicals, manufacturing, and industrial sectors.
The total investment for the first phase is estimated to be more than $5bn, with most of the chemicals produced in the UAE for the first time.
The new methanol facility is in line with the UAE’s Ministry of Industry and Advanced Technology’s goal of diversifying the UAE’s economy and advance industrial development.
TA’ZIZ is also advancing a large-scale ethylene dichloride (EDC), chlor-alkali, and PVC production facility in partnership with Reliance Industries and Shaheen Chem.
In addition, Fertiglobe, Mitsui & Co. and GS Energy have also partnered with TA’ZIZ to develop a large-scale low-carbon ammonia facility.
Proman UAE managing director Richard Brink said: “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.”