Abu Dhabi National Oil Company (ADNOC) has signed an agreement with Proman, one of the world’s leading producers of methanol, to develop the UAE’s first world-scale production facility at the TA’ZIZ Industrial Chemicals Zone in Ruwais, Abu Dhabi.
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.
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, a statement said.
It added that the project is subject to relevant regulatory approvals.
TA’ZIZ is a joint venture between ADNOC and ADQ, an Abu Dhabi-based investment and holding company.
Dr 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, Proman CEO, added: “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.
“As such, this is a particularly opportune time to invest in the UAE’s domestic downstream production capacity.”
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.
TA’ZIZ comprises of three industrial zones – an Industrial Chemicals Zone, a Light Industrial Zone and an Industrial Services Zone.
The TA’ZIZ development has received significant interest from local and international investors since its launch in November 2020, the statement said.
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