Abu Dhabi’s industrial hub Ta’ziz has awarded a Dh6.2 billion contract to Samsung E&A to construct the UAE’s first methanol plant. The facility, located in Al Ruwais Industrial City, is expected to be operational by 2028.
One of the World’s Largest Methanol Plants
With a future production capacity of 1.8 million tonnes per year, the plant will be among the world’s largest. Ta’ziz CEO Mashal Saoud Al-Kindi highlighted that this major EPC contract marks a key step in realizing Ta’ziz’s vision of building an integrated chemicals ecosystem in Al Dhafra. The project is expected to strengthen the UAE’s leadership in sustainable chemicals production and support ADNOC’s global ambition in the sector.
Expansion of the Chemicals Sector
As part of its first phase, Ta’ziz will produce 4.7 million tonnes per annum of various chemicals by 2028. This includes methanol, low-carbon ammonia, polyvinyl chloride (PVC), ethylene dichloride, vinyl chloride monomer, and caustic soda. Several of these chemicals will be produced in the UAE for the first time, reinforcing Ta’ziz’s strategic goal of expanding the domestic chemicals value chain and boosting economic diversification through industrialization.
Previous Investments in Ta’ziz Complex
This latest project award follows the announcement in November 2024 of more than $2 billion in contracts for essential site infrastructure. These contracts cover utilities and the development of a chemicals terminal at the Ta’ziz complex, further supporting the expansion of the industrial hub.
Importance of Methanol
Methanol is regarded as one of the most promising transition fuels, offering a cleaner alternative to traditional fuels like coal and diesel for power generation. It also serves as a substitute for high-sulphur fuels in marine transportation. Additionally, methanol is a key feedstock for various chemical derivatives used in producing plastics, resins, pharmaceuticals, and building materials.
