TA’ZIZ Awards $1.7 Billion Contract For First Methanol Plant In The UAE

TA’ZIZ has awarded a $1.7 billion (AED6.2 billion) engineering, procurement, and construction contract to SAMSUNG E&A. This contract is for building one of the largest methanol plants globally in Al Ruwais Industrial City, Abu Dhabi. The project is crucial for TA’ZIZ's aim to boost the UAE's economic diversification by developing new domestic chemical value chains.

The methanol plant will have a capacity of 1.8 million tons per annum (mtpa) and will be the first of its kind in the UAE. Scheduled for completion in 2028, it will use clean energy from the grid, making it one of the most energy-efficient methanol facilities worldwide.

Mashal Saoud Al-Kindi, CEO of TA’ZIZ, stated that this EPC contract award marks a significant step towards achieving TA’ZIZ’s vision. He said, "This landmark EPC contract award is a significant step in realizing TA’ZIZ’s vision to drive the UAE’s industrial growth by creating a world-scale integrated chemicals ecosystem in Al Dhafra region." The plant aims to enhance the UAE’s leadership in sustainable chemical production.

Hong Namkoong, President and CEO of SAMSUNG E&A, expressed pride in receiving this recognition. He noted, "SAMSUNG E&A is honored to receive this recognition, highlighting TA’ZIZ’s and our commitment to driving industrial innovation, diversifying the UAE's economy, and enabling sustainable growth." This collaboration underscores their shared commitment to industrial innovation and economic diversification.

In its initial phase by 2028, TA'ZIZ plans to produce 4.7 mtpa of various chemicals including methanol, low-carbon ammonia, polyvinyl chloride (PVC), ethylene dichloride, vinyl chloride monomer, and caustic soda. Many of these chemicals will be manufactured domestically for the first time. This aligns with TA’ZIZ’s strategic goal to expand local chemical value chains and promote economic diversification through industrialisation.

The development of this plant not only strengthens TA’ZIZ's role but also supports ADNOC’s global ambition to lead in the chemicals sector. By establishing such facilities, the UAE is set to become a global hub for advanced methanol production.

This initiative highlights the power of collaboration between major industry players like TA’ZIZ and SAMSUNG E&A. Their joint efforts are pivotal in creating large-scale facilities that position the UAE as a leader in advanced methanol production on a global stage.

With inputs from WAM