Abu Dhabi: The Abu Dhabi Chemicals Derivatives Company (or TA’ZIZ) and methanol producer Proman, have signed a shareholders’ agreement to develop the UAE’s first world-scale methanol production facility in Al Ruways Industrial City, it said on Thursday.
The facility has an annual capacity of up to 1.8 million tons.
“New chemicals in the UAE will enable new local supply chains and support long-term industrial growth for Abu Dhabi’s private sector,” said Khaleefa Yousef Al Mheiri, TA’ZIZ Acting CEO.
“Methanol production in the UAE is in line with the Ministry of Industry and Advanced Technology’s mission to diversify the UAE’s economy and accelerate industrial development,” TA’ZIZ said in a statement. “Growth of this chemical is expected to be driven by emerging economies in Africa and Asia, while in the UAE it will support decreased reliance on imports, enabling local manufacturers to “Make it In the Emirates” and establish greater resiliency among domestic supply chains.”
Richard Brink, Managing Director Proman in the UAE, said: “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.”
TA’ZIZ continues to advance at pace with site preparation underway and a Joint Venture incorporation agreement for the development of a world-scale ethylene dichloride (EDC), chlor-alkali, polyvinyl chloride (PVC) production facility signed with Reliance Industries Limited and Shaheen Chem Holdings Investments LLC (Shaheen). Fertiglobe, Mitsui & Co., Ltd (Mitsui) and GS Energy Corporation (GS Energy) are also partnering with TA’ZIZ to develop a world-scale low-carbon ammonia facility.
The total investment in the first phase of TA’ZIZ will be in excess of $5 billion (Dh18 billion), with most of the chemicals produced in the UAE for the first time. All agreements are subject to regulatory approvals.