TA'ZIZ awards US $1.7bn contract for the UAE's first methanol plant
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Scheduled for completion in 2028, the plant will operate using clean energy from the grid
TA'ZIZ has awarded a US $1.7bn engineering, procurement, and construction (EPC) contract to SAMSUNG E&A for the development of one of the world's largest methanol plants in Al Ruwais Industrial City, in Abu Dhabi's Al Dhafra region. Scheduled for completion in 2028, the plant will operate using clean energy from the grid, making it one of the most energy-efficient methanol production facilities globally.
The project marks a significant step in TA'ZIZ's efforts to support the UAE's economic diversification by establishing new domestic chemical value chains. The facility, with a production capacity of 1.8-million tonnes per annum (mtpa), will be the first methanol manufacturing plant in the UAE.
Mashal Saoud Al-Kindi, CEO of TA'ZIZ stated, 'This major EPC contract award represents a crucial milestone in fulfilling TA'ZIZ's vision to drive industrial growth in the UAE by developing a large-scale integrated chemicals ecosystem in the Al Dhafra region. The plant will reinforce the UAE's leadership in sustainable chemicals production and further TA'ZIZ's contribution to ADNOC's global ambition in the chemicals sector.'
Hong Namkoong, President and CEO of SAMSUNG E&A commented, 'SAMSUNG E&A is privileged to receive this recognition, reflecting both our and TA'ZIZ's dedication to industrial innovation, economic diversification, and sustainable growth in the UAE. This achievement highlights the impact of collaboration in establishing world-class facilities that will position the UAE as a key global player in advanced methanol production.'
During its initial phase, TA'ZIZ aims to produce 4.7mtpa of chemicals by 2028, including methanol, low-carbon ammonia, polyvinyl chloride (PVC), ethylene dichloride, vinyl chloride monomer, and caustic soda. Many of these chemicals will be produced domestically for the first time, aligning with TA'ZIZ's strategic objective to expand the UAE's chemical value chain and promote economic diversification through industrial growth.
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