TA’ZIZ, Proman Sign Shareholders’ Agreement To Develop UAE’s First Methanol Facility

The facility has an anticipated annual capacity of up to 1.8 million metric tonnes and will meet growing domestic and international demand for this clean and versatile chemical commodity. Methanol has a variety of uses, including in fuels, solvents, pharmaceuticals, and construction materials, and has growing potential as a low-emission fuel, particularly in the maritime sector.

Khaleefa Yousef Al Mheiri, TA’ZIZ Acting Chief Executive Officer, said, "This agreement continues to build momentum at TA’ZIZ and advances our mission to diversify the UAE’s economy and accelerate industrial development." Our partnership with Proman underlines the UAE’s attractiveness as a destination for international partners and investors as we progress plans to produce methanol at world scale in Al Ruways. "New chemicals in the UAE will enable new local supply chains and support long-term industrial growth for Abu Dhabi’s private sector."

 Methanol production in the UAE is in line with the Ministry of Industry and Advanced Technology’s mission to diversify the UAE’s economy and accelerate industrial development. Emerging economies in Africa and Asia are expected to drive the growth of this versatile chemical. In the UAE, it will help lessen the country's reliance on imports, allowing local manufacturers to "Make it in the Emirates" and making domestic supply chains more stable.

Richard Brink, Managing Director of Proman in the UAE, stated, "We welcome the shareholders’ agreement, which is a vital next step towards Abu Dhabi’s first world-scale methanol plant." As well as being Proman’s first investment in the UAE, we are working to ensure that this proposed project will be one of the most technologically advanced and low-emission natural gas-to-methanol facilities in the world. "With growing global demand for methanol as a cleaner fuel, this agreement demonstrates the huge potential for the TA’ZIZ Industrial Chemicals Zone and Abu Dhabi’s evolving downstream industry."

TA’ZIZ continues to advance at pace with site preparation underway and a joint venture incorporation agreement for the development of a world-scale ethylene dichloride (EDC), chlor-alkali, and polyvinyl chloride (PVC) production facility signed with Reliance Industries Limited and Shaheen Chem Holdings Investments LLC (Shaheen). Fertiglobe, Mitsui & Co., Ltd., and GS Energy Corporation (GS Energy) are also working with TA'ZIZ to build a low-carbon ammonia plant on a global scale.

The total investment in the first phase of TA’ZIZ will be in excess of US$5 billion (AED18 billion), with most of the chemicals being produced in the UAE for the first time. All agreements are subject to regulatory approval.

When ADNOC and ADQ launch TA'ZIZ at the end of 2020, it will help grow Al Ruways Industrial City and Abu Dhabi's chemicals, manufacturing, and industrial sectors in general.