Abu Dhabi National Oil Company (ADNOC) has signed an agreement with Proman, one of the world’s leading producers of methanol, to develop the UAEs first world-scale methanol production facility at the TA’ZIZ Industrial Chemicals Zone in Ruwais, Abu Dhabi
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 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. The project is subject to relevant regulatory approvals.
HE Dr Sultan Ahmed Al Jaber, UAE minister of industry and advanced technology and managing director and Group CEO of ADNOC, said, “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 chief executive, said, “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. We are excited to help drive forward the ambitious TA’ZIZ industrial development and the UAE’s downstream growth strategy, as well as growing our partnership with TA’ZIZ in the future.”
The TA’ZIZ development has received significant interest from local and international investors since its launch in November 2020. Partnership agreements have been signed with Fertiglobe, GS Energy, and Mitsui for the proposed development of a low-carbon ammonia production facility and with Reliance Industries for a proposed ethylene dichloride (EDC), chlor-alkali (CA), polyvinyl chloride (PVC) production facility.
