Dubai: The Abu Dhabi energy giant ADNOC will in alliance with Proman - one of the world’s leading producers of methanol - develop the UAE's first world-scale methanol production facility at the TA’ZIZ Industrial Chemicals Zone in Ruwais.
This will see the Abu Dhabi Chemicals Derivatives Company (TA'ZIZ) and Proman build a natural gas to methanol facility with a likely capacity of up to 1.8 million tons per annum. The facility will meet "growing domestic and international demand for this clean and versatile chemical commodity".
It is being used as a lower-emission fuel alongside existing uses spanning industrial products. (The project is subject to relevant regulatory approvals.)
TA’ZIZ is a joint venture between ADNOC and ADQ, an Abu Dhabi-based investment company. The partnership with Proman will "capitalize upon ADNOC’s attractive value proposition for downstream petrochemicals, ADQ’s diversified portfolio and Proman’s extensive construction and operational expertise as the world’s second largest methanol producer".
The final investment decision on the this and other TA'ZIZ-based projects are expected later this year. An agreement has also been signed with AD Ports Group to develop a new ports and logistics facility at TA’ZIZ.
Proman's specialization is in methanol, fertilizer and other products such as melamine.
"This world-scale plant advances the TA’ZIZ mission to diversify the UAE’s economy and accelerate industrial development, by enabling local supply chains through the production of new chemicals in the UAE," said Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC.
Growing global interest in methanol as a cleaner fuel, particularly for the shipping sector, is set to drive a significant increase in worldwide methanol demand over the coming decade. As such, this is a particularly opportune time to invest in the UAE’s domestic downstream production capacity
Since its unveiling in November of 2020, TA’ZIZ has entered partnership agreements with Fertiglobe in which ADNOC is a shareholder), GS Energy, and Mitsui for the proposed development of a low-carbon ammonia production facility. There is also another with Mukesh Ambani owned Reliance Industries for a proposed ethylene dichloride (EDC), chlor-alkali (CA), polyvinyl chloride (PVC) production facility.
Eight UAE-based investors have signed investment agreements with TA’ZIZ, for up to a 20 per cent stake in a portfolio of chemicals projects at the TA’ZIZ Industrial Chemicals Zone, marking the first domestic Public Private Partnership in Abu Dhabi’s downstream and petrochemicals sector.
- Methanol is a chemical building block used for multiple industrial applications, including in fuels, adhesives, solvents, pharmaceuticals and construction materials.
- Growth is expected to be driven by emerging markets in Africa and Asia, while production of methanol in the UAE will support decreased reliance on imports.