ADNOC and Proman to develop UAE's first 'world-scale' methanol plant

UAE energy giant ADNOC said on Thursday it will develop the country’s first world-scale methanol production facility at the TA’ZIZ Industrial Chemicals Zone in Ruwais, in partnership with Proman - one of the world’s leading producers of methanol.

Under the terms of the agreement, Abu Dhabi Chemicals Derivatives Company (TA'ZIZ) and Proman will construct a natural gas to methanol facility with an anticipated annual capacity of up to 1.8 million tons per annum, which will meet growing domestic and international demand for the clean chemical commodity, ADNOC said in a statement.

Methanol has recently gained global momentum as a lower-emission fuel alongside existing uses spanning industrial products.

“This world-scale plant advances the TA’ZIZ mission to diversify the UAE’s economy and accelerate industrial development, by enabling local supply chains through the production of new chemicals in the UAE,” Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC, said in a statement.

TA’ZIZ is a joint venture between ADNOC and ADQ, an Abu Dhabi-based investment and holding company. The proposed partnership will capitalise upon ADNOC’s attractive value proposition for downstream petrochemicals, ADQ’s diversified portfolio and Proman’s extensive construction and operational expertise as the world’s second largest methanol producer, the company said in the statement.

Headquartered in Switzerland and with assets in the US, Trinidad and Oman, this is Proman’s first venture in the UAE. The final investment decision on the this and other TA'ZIZ-based projects are expected later this year. An agreement has also been signed with AD Ports Group to develop a new ports and logistics facility at TA’ZIZ.