TAZIZ and Proman agree to build UAE’s first methanol production plant
Abu Dhabi chemicals derivatives company (TA’ZIZ) and Proman, a methanol manufacturer, will develop a methanol production plant at the TA’ZIZ Industrial Chemicals Zone in Al Ruways Industrial City, Abu Dhabi, UAE.
The proposed plant is said to be the UAE’s first world-scale methanol production facility and decrease the country’s reliance on imports.
TA’ZIZ is a joint venture established in 2020 by Abu Dhabi National Oil Company (ADNOC) and ADQ.
The methanol production facility will have an anticipated annual capacity of up to 1.8 million tons and help TA’ZIZ meet growing national and international demand for the organic chemical.
The plant is said to be the most technologically advanced and low-emission natural gas-to-methanol facility in the world.
Khaleefa Yousef Al Mheiri — TA’ZIZ acting CEO said: “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.”
Growing global demand for methanol is expected to be driven by its usage, and demonstrated decarbonization potential and emerging economies in Africa and Asia.
TAZIZ and Proman agree to build UAE’s first methanol production plant. Photo courtesy of ADNOC Group.
Richard Brink — Proman UAE Managing Director 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.”
Methanol is used in solvents, pharmaceuticals, construction materials and as a lower-emission fuel, particularly in the maritime sector.
TA’ZIZ has partnered with Reliance Industries and Shaheen Chem Holdings to develop an ethylene dichloride, chlor-alkali, polyvinyl chloride manufacturing plant.
The company is also collaborating with Fertiglobe, Mitsui, and GS Energy among others to build a low-carbon ammonia facility.
According to ADNOC, the first phase of TA’ZIZ will see an investment of over AED18 billion ($5 billion).