Petrochemicals

The contract is for the UAE's first methanol plant. (Image source: TA'ZIZ)

SAMSUNG E&A is set to construct the UAE’s first methanol plant in Al Ruwais Industrial City, Abu Dhabi

This follows the award of an engineering, procurement and construction (EPC) contract award worth US$1.7bn (AED6.2bn) from TA’ZIZ, the UAE’s chemicals and transition fuels ecosystem.

The project is in line with TA’ZIZ’s mission to advance the UAE’s economic diversification by unlocking new domestic chemical value chains. The 1.8 million tons per annum (mtpa) plant is set to be one of the world’s largest methanol plants, as well as one of the most energy-efficient, as on completion in 2028 it will be powered by clean energy from the grid.

Promising transition fuel

Methanol is a promising transition fuel, offering a cleaner alternative to conventional fuels such as coal and diesel for power generation. It also serves as an alternative to high-sulphur fuels used in marine transportation. Additionally, methanol is a key feedstock for a range of chemical derivatives, allowing the production of thousands of products including plastics, resins, pharmaceuticals and building materials.

TA’ZIZ, founded in 2020 as a joint venture between ADNOC and ADQ, is a manufacturing, industrial services, logistics and utilities ecosystem that drives, the production of chemicals value chains and transition fuels.In its initial phase, TA'ZIZ will produce 4.7 mtpa of chemicals by 2028, including methanol, low-carbon ammonia, polyvinyl chloride (PVC), ethylene dichloride, vinyl chloride monomer, and caustic soda. Several of these chemicals will be produced for the first time in the UAE, reinforcing TA’ZIZ’s strategic goal to expand the local chemicals value chain and advance economic diversification through industrialisation.

Mashal Saoud Al-Kindi, CEO of TA’ZIZ, said, “This landmark EPC contract award is a significant step in realizing TA’ZIZ’s vision to drive the UAE’s industrial growth by creating a world-scale integrated chemicals ecosystem in Al Dhafra region. The plant will enhance the UAE’s position as a leader in sustainable chemicals production and strengthen TA’ZIZ’s role in enabling ADNOC’s global ambition to lead the chemicals sector.”

SAMSUNG E&A will bring its successful experience of a recently completed methanol plant in Malaysia and will apply its unique execution system, involving modularisation and automation, to the project.

Hong Namkoong, president and CEO of SAMSUNG E&A, said, "SAMSUNG E&A is honoured to receive this recognition, highlighting TA’ZIZ’s and our commitment to driving industrial innovation, diversifying the UAE's economy, and enabling sustainable growth. We plan to actively leverage local resources and our network of partners based on our extensive regional experience in the Ruwais Industrial Complex, UAE. This milestone underscores the power of collaboration in creating world-scale facilities that will position the UAE as a global hub for advanced methanol production.”

This project includes the construction of a 30,000-metric-ton ethylene storage facilities and associated utility infrastructure. (Image source: Adobe Stock)

SAMSUNG E&A has been awarded a contract with Ras Laffan Petrochemicals (RLP) for the Qatar RLP Ethylene Storage Plant, to be executed as a joint venture with CTCI of Taiwan

The total contract amount of the project is around US$418mn, with SAMSUNG E&A's share being about US$215mn, and the contract period is estimated to be 34 months. The client, Ras Laffan Petrochemicals, is a joint venture between Qatar Energy, Qatar's state-run energy company, and a subsidiary of Chevron Phillips Chemical Company LLC.

This project includes the construction of a 30,000-metric-ton ethylene storage facilities and associated utility infrastructure at an industrial complex in Ras Laffan, 80 km north of Doha, Qatar's capital. It is located within the same complex as the RLP ethylene project awarded to SAMSUNG E&A and CTCI in 2023 and is currently under execution. Its purpose is to store ethylene during the plant's maintenance and repair periods, ensuring availability in case of an emergency, while allowing flexible handling of ethylene from both upstream and dowonstream suppliers. SAMSUNG E&A is responsible for the engineering, procurement, and construction (EPC) of key equipment, including 30,000 metric ton storage tanks, compressors, and pumps.

The joint venture plans to deliver exceptional schedule management for the client by applying innovative strategies in project execution. This includes a pioneering approach to procurement, with key equipment and materials being purchased before the engineering process is finalised.

Hong Namkoong, president and CEO of SAMSUNG E&A said, “As we have secured a linked order with Ras Laffan Petrochemicals, we will successfully carry out the project based on our performance experience and innovation strategy and strengthen our position in the Qatari market.”

Michael Yang, chairman of CTCI, said, “We appreciate Ras Laffan Petrochemicals’ continued trust in offering this opportunity to our team. We will continue to deliver high-quality engineering and safety management to ensure the project is completed on time and up to standard.”

The new process will improve efficiency and reduce carbon footprint. (Image source: Honeywell)

Honeywell has launched a new process to improve the efficiency and sustainability of light olefin production

The naphtha to ethane and propane (NEP) technology generates a tunable amount of ethane and propane from naphtha and/or LPG feedstocks, generating more high-value ethylene and propylene with reduced production of lower-value by-products compared to a traditional mixed-feed steam cracking unit and resulting in net cash margin increases. An NEP-based olefins complex also reduces CO2 intensity per metric ton of light olefins produced by 5 to 50% versus a traditional mixed-feed steam cracker.

More efficient production

“The petrochemical industry faces strong competition and challenges in obtaining raw materials globally,” said Matt Spalding, vice president and general manager of Honeywell Energy and Sustainability Solutions in MENA. “Our technology helps to enable more efficient production of ethylene and propylene, two chemicals which are in high demand, while also helping our customers lower their carbon emissions.”

The new solution is a part of Honeywell’s Integrated Olefin Suite technology portfolio to enhance the production of light olefins.

The programme will optimise asset lifecycle, enhance machinery performance and improve overall reliability. (Image source: Adobe Stock)

KBR has been awarded a five-year asset condition monitoring programme contract from Rabigh Refining & Petrochemical Company (Petro Rabigh) to deploy predictive maintenance services at its plant in Rabigh, Saudi Arabia