TA’ZIZ awards $1.7bn EPC contract for methanol plant in Abu Dhabi

TA’ZIZ has awarded Samsung E&A a $1.7bn (Dhs6.2bn) engineering, procurement, and construction (EPC) contract to construct one of the world’s largest methanol plants in Al Ruwais Industrial City, located in the Al Dhafra region of Abu Dhabi.

The new plant, slated to produce 1.8 million tonnes per annum (mtpa) of methanol, will be the first of its kind in the UAE.

Set for completion in 2028, the facility will be powered by clean energy from the grid, making it one of the most energy-efficient methanol production plants globally.

TA’ZIZ is enabling ADNOC’s global ambition to lead the chemicals sector

Mashal Saoud Al-Kindi, CEO of TA’ZIZ, emphasised the project’s significance as a critical part of the UAE’s economic diversification strategy. “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 the Al Dhafra region,” said Al-Kindi. “The plant will enhance the UAE’s position as a leader in sustainable chemicals production and strengthen TA’ZIZ’s role in enabling ADNOC’s global ambition to lead the chemicals sector.”

TA’ZIZ, a joint venture between ADNOC and ADQ established in 2020, is focused on driving the UAE’s industrial development and economic diversification. The company aims to create an integrated ecosystem for manufacturing, industrial services, logistics, and utilities to support the production of chemicals and transition fuels.

The methanol plant is part of TA’ZIZ’s broader initiative to advance industrialization in the UAE and expand its chemicals value chain. The company plans to produce a range of chemicals, including low-carbon ammonia, polyvinyl chloride (PVC), ethylene dichloride, vinyl chloride monomer, and caustic soda. Many of these chemicals will be produced for the first time in the UAE.

Key partnership

Hong Namkoong, president and CEO of Samsung E&A, praised the partnership and the potential for industrial innovation. “This milestone underscores the power of collaboration in creating world-scale facilities that will position the UAE as a global hub for advanced methanol production,” he said.

This project follows the announcement in November 2024 of over $2bn in contracts for the development of essential site infrastructure, including utilities and a chemicals terminal, at the TA’ZIZ complex.

Methanol, a versatile chemical, is gaining prominence as a transition fuel due to its cleaner profile compared to traditional fuels like coal and diesel, especially in power generation and marine transportation.

It also serves as a key feedstock for producing various products, including plastics, resins, pharmaceuticals, and building materials.

Read: TA’ZIZ, Japan’s Mitsui to build ammonia plant in UAE, production to start 2027