TA’ZIZ, a joint venture between ADNOC and ADQ, announced today that it awarded SAMSUNG E&A an engineering, procurement and construction (EPC) contract worth AED6.2 billion ($1.7 billion) 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 plant will be the first methanol production facility in the UAE.
“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,” stated Mashal Saoud Al-Kindi, CEO of TA’ZIZ.
Plant to produce 4.7 mtpa of chemicals by 2028
In its initial phase, TA’ZIZ will produce 4.7 million tons per annum 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.
SAMSUNG E&A will bring its successful experience of a recently completed methanol plant in Malaysia and the active application of its unique execution system, characterized by modularization and automation, to the project.
“We plan to actively leverage local resources and our network of partners based on our extensive regional experience in the Ruwais Industrial Complex, UAE. SAMSUNG E&A will ensure the project’s success by applying our differentiated execution system, which integrates our innovative technologies such as modularization and automation,” stated Hong Namkoong, President and CEO of SAMSUNG E&A.
Upon completion in 2028, the methanol plant will be powered by clean energy from the grid, making it one of the world’s most energy-efficient methanol plants.
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TA’ZIZ advances Al Ruwais Industrial City infrastructure
In November last year, TA’ZIZ announced engineering, procurement and construction (EPC) contracts valued at more than $2 billion for the development of essential site infrastructure to advance the TA’ZIZ chemicals and transition fuels ecosystem under development in Al Ruwais Industrial City.
The awards will also accelerate TA’ZIZ’s efforts to establish a domestic low-carbon chemicals supply chain while supporting ADNOC’s chemicals growth strategy and ambitions to become a top five global chemicals player. TA’ZIZ is scheduled to commence production in 2027, targeting an output of 4.7 million tons per annum (mtpa) of chemicals by 2028.
It will produce a range of chemicals, many of which have not previously been manufactured in the UAE, enabling the local manufacture of many new construction, agriculture and healthcare products.
In its initial phase, TA’ZIZ will produce six chemicals: caustic, ethylene dichloride, vinyl chloride monomer, polyvinyl chloride, low-carbon ammonia and methanol.
