United Arab Emirates News

TA’ZIZ Awards $1.7 Billion Contract for UAE’s First Methanol Plant

UAE's First Methanol Facility in Al Ruwais to Boost Economic Diversification and Strengthen Global Chemicals Leadership

TA’ZIZ Awards $1.7 Billion EPC Contract to SAMSUNG E&A for World’s Largest Methanol Plant in UAE

The UAE-based industrial development firm TA’ZIZ has announced that SAMSUNG E&A has been awarded a ground-breaking engineering, procurement, and construction (EPC) contract worth $1.7 billion (AED 6.2 billion). This award signifies a major turning point in the country’s efforts to develop its industrial capabilities, since one of the biggest methanol manufacturing facilities in the world was built at Al Ruwais Industrial City, which is situated in the Al Dhafra area of Abu Dhabi. As the first of its kind in the United Arab Emirates, the methanol facility is anticipated to make a major contributor to the nation’s efforts to diversify its economy. It will have a production capacity of 1.8 million tons per annum (mtpa).

This large-scale project is central to TA’ZIZ’s broader mission of fostering the UAE’s economic transformation by expanding its domestic chemical production capabilities and unlocking new value chains. With its expected completion in 2028, the plant will be powered by clean energy sourced from the national grid, positioning it as one of the most energy-efficient methanol plants globally.

The CEO of TA’ZIZ, Mashal Saoud Al-Kindi, stressed the significance of this EPC contract award in the company’s long-term plan to establish a top-tier integrated chemicals ecosystem in the Al Dhafra region. He emphasized that the project will help ADNOC achieve its goal of being a global leader in the chemicals industry and will improve the UAE’s position in the global market for sustainable chemicals.

Simultaneously, SAMSUNG E&A President and CEO Hong Namkoong conveyed the company’s pride in winning the contract, highlighting TA’ZIZ and SAMSUNG’s dedication to promoting innovation in the UAE’s industrial sector. He underlined that the project demonstrates both businesses’ commitment to helping the nation diversify its economy, creating the groundwork for long-term prosperity, and positioning the United Arab Emirates as a world center for the manufacture of advanced methanol.

According to TA’ZIZ, the company’s main objective is to generate 4.7 million tons of chemicals annually by 2028. Important chemicals like methanol, low-carbon ammonia, polyvinyl chloride (PVC), ethylene dichloride, vinyl chloride monomer, and caustic soda will be produced in the first stages of production. The company’s strategic objective to further integrate the UAE’s chemical value chain and increase industrialization as part of the larger economic diversification plan will be reinforced by the first-ever local production of several of these chemicals.

This significant investment and collaboration represent the UAE’s ongoing commitment to enhancing its manufacturing capabilities, establishing new industries, and playing an influential role in the global chemicals market, ultimately contributing to the continued growth and development of the nation’s industrial and economic landscape.

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