Abu Dhabi’s Ta’ziz awards Dh6.2b contract for UAE’s first methanol plant

Dubai: The Abu Dhabi industrial hub Ta’ziz has awarded a substantial Dh6.2 billion contract to Samsung E&A to build the first methanol plant in the UAE.

With a future production capacity of 1.8 million tonnes per annum, this will also be one of the world’s largest methanol plants.

Located in Abu Dhabi’s Al Ruwais Industrial City, the plant is set to be ready in 2028.

“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 Al Dhafra region,” said Mashal Saoud Al-Kindi, CEO of Ta’ziz. 

“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.” 

In the initial phase, Ta'ziz will produce 4.7 mtpa of chemicals by 2028, including methanol, low-carbon ammonia, polyvinyl chloride (PVC), ethylene dichloride, vinyl chloride monomer, and caustic soda.

“Several of these chemicals will be produced for the first time in the UAE,” said a statement. Which adds to ‘Ta’ziz’s strategic goal to expand the local chemicals value chain and advance economic diversification through industrialization’, the statement added.

The new project award follows the announcement in November 2024 of over $2 billion in contracts for essential site infrastructure, including utilities and a chemicals terminal at the Ta’ziz complex.

Methanol is seen as ‘among the most promising transition fuels’, and a cleaner alternative to conventional fuels such as coal and diesel for power generation. It also serves as an alternative to high-sulphur fuels used in marine transportation.

Methanol is a key feedstock for a range of chemical derivatives, allowing the production of thousands of products including plastics, resins, pharmaceuticals and building materials.