ADNOC, Abu Dhabi National Oil Company signed an agreement with Proman, world’s leading producers of methanol, to develop the UAE’s first world-scale methanol production facility at the TA’ZIZ Industrial Chemicals Zone in Ruwais.
Under the terms of the agreement, Abu Dhabi Chemicals Derivatives Company RSC Ltd. (“TA’ZIZ”) and Proman will construct a natural gas to methanol facility with an anticipated annual capacity of up to 1.8 million tonnes per annum.
The facility will meet growing domestic and international demand for this clean and versatile chemical commodity which is gaining momentum as a lower-emission fuel alongside existing uses spanning industrial products. The project is subject to relevant regulatory approvals.
TA’ZIZ is a joint venture between Abu Dhabi National Oil Company (ADNOC) and ADQ, an Abu Dhabi-based investment and holding company.
The proposed partnership will capitalize 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.
ADNOC’s and Proman’s commentary
HE Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and managing director and group CEO of ADNOC, said: “We are pleased to welcome Proman as a strategic partner as we develop the UAE’s first domestic methanol production facility.
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.
“As Proman’s first investment in the UAE, our agreement underscores the continued appeal of the UAE as a highly attractive destination for international capital, supporting long-term industrial growth for Abu Dhabi’s private sector.”
David Cassidy, chief executive, Proman, said: “We look forward to bringing our full value-chain expertise to this development and expanding Proman’s global footprint to the UAE, in close partnership with ADNOC and ADQ. This will be the first methanol production facility in the UAE and will be one of the most energy efficient and low-emitting plants in the world.
“Growing global interest in methanol as a cleaner fuel, particularly for the shipping sector, is set to drive a significant increase in worldwide methanol demand over the coming decade.
“Growth is expected to be driven by emerging economies in Africa and Asia, while production of methanol in the UAE will support decreased reliance on imports, enabling local manufacturers to “Make it In the Emirates” and establish greater resiliency among domestic supply chains.”
Final Investment Decisions for these chemical projects are expected later this year and are subject to relevant regulatory approvals. An agreement has also been signed with AD Ports Group to develop a new world-class ports and logistics facility at TA’ZIZ.Abu Dhabi, ADNOC, Methanol, Proman, Ruwais, TA'ZIZ