TA’ZIZ Announces $1.7 Billion Award to Build First Methanol Plant in the UAE

• World-scale plant marks a milestone in ADNOC’s chemicals growth strategy and the expansion of its lower-carbon fuels business
• Contract advances TA’ZIZ’s ambition to produce new chemicals in the UAE for the first time, unlocking new domestic value chains and creating an integrated chemicals ecosystem in Al Dhafra region
• Powered by clean energy, the plant will produce 1.8 mtpa of methanol and will be among the world’s most energy-efficient methanol facilities

TA’ZIZ announced today an engineering, procurement and construction (EPC) contract award of $1.7 billion (AED6.2 billion) to SAMSUNG E&A for the construction of one of the world’s largest methanol plants in Al Ruwais Industrial City, Al Dhafra region, Abu Dhabi. 

The project is a key milestone in TA’ZIZ’s mission to advance the UAE’s economic diversification by unlocking new domestic chemical value chains. The 1.8 million tons per annum (mtpa) plant will be the first methanol production facility in the UAE. Upon completion in 2028, it will be powered by clean energy from the grid, making it one of the world’s most energy-efficient methanol plants.

Mashal Saoud Al-Kindi, CEO of TA’ZIZ, said: “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. 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.”

Hong Namkoong, President and CEO of SAMSUNG E&A, said: "SAMSUNG E&A is honored to receive this recognition, highlighting TA’ZIZ’s and our commitment to driving industrial innovation, diversifying the UAE's economy, and enabling sustainable growth. 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.”

In its 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, reinforcing TA’ZIZ’s strategic goal to expand the local chemicals value chain and advance economic diversification through industrialization.

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