TA’ZIZ Awards $1.7 Billion Contract For Methanol Plant

TA'ZIZ, one of the major players in the chemicals industry in the UAE, has selected Samsung Engineering & Architecture (SAMSUNG E&A) for a $1.7 billion Engineering, Procurement, and Construction (EPC) contract to build the first ever methanol manufacturing facility for the country at the Al Ruwais Industrial City, Al Dhafra region, in Abu Dhabi. This is going to be one of the most ambitious projects in the UAE's industrial growth, as well as furthering the country's position as a global leader in sustainable chemical production while driving economic diversification.

The 1.8 million tons per annum (mtpa) methanol-capacity facility will be completed by 2028. The development is designed to be one of the world's most energy-efficient methanol plants, powered entirely by clean energy from the grid. The project supports the national strategy of the UAE to enhance its industrial base and embrace best practices in industrialization that follow global environmental trends.

Mashal Saoud Al-Kindi, CEO of TA'ZIZ, said: "The EPC contract award is a critical milestone in the mission of TA'ZIZ to drive industrial growth in the UAE. It is a step toward realizing the vision of driving the UAE's industrial growth through the creation of a world-scale integrated chemicals ecosystem in the Al Dhafra region.". The plant will reinforce the position of the UAE as a leader in sustainable chemicals production and reinforce the role of TA'ZIZ in enabling the global ambition of ADNOC to lead the chemicals sector, said Al-Kindi.

This partnership with SAMSUNG E&A is going to support not only enhancing the industrial capabilities of the UAE but also place the nation as a global hub for advanced methanol production. SAMSUNG E&A is proud to partner with TA'ZIZ on this trailblazing venture," said Hong Namkoong, President and CEO of SAMSUNG E&A. "This recognition reinforces our shared dedication to the industrialization of TA'ZIZ and to our vision of accelerating industrial innovation and economic diversification for sustainable growth in the UAE.". This achievement exemplifies the strength of collaboration in realizing world-scale facilities that will not only make the UAE the world's most significant hub for advanced methanol production but also become a global pillar," he said.

TA'ZIZ aims to succeed in an integrated chemicals ecosystem in the Al Dhafra region and outlines its plans. In the initial phase, the company will produce 4.7 mtpa of different chemicals by 2028, which include methanol, low-carbon ammonia, polyvinyl chloride (PVC), ethylene dichloride, vinyl chloride monomer, and caustic soda. Notably, many of these chemicals will be produced in the UAE for the first time, representing a significant expansion of the local chemical value chain.

The production of methanol, which is a chemical that can be used in almost every application imaginable-from fuels and adhesives to plastics-plays a key role in the diversification of the UAE's industrial portfolio. Energy efficiency and clean energy integration in the plant align with efforts to reduce carbon emissions and develop sustainable industrial practices around the world.

By establishing the methanol facility, TA'ZIZ is in support of the UAE's goals of industrial and economic diversification while adding value to the international efforts towards building a more sustainable chemicals industry. This development emphasizes the commitment of the nation toward advancing industrialization while remaining sustainable.

As the UAE continues to invest in innovative and sustainable chemical production, TA'ZIZ's partnership with SAMSUNG E&A marks a defining moment in its journey toward industrial leadership. This project will further cement the UAE's position as a leader in the global chemicals sector, testifying to the power of collaboration, innovation, and sustainable development in shaping a thriving industrial ecosystem.