Methanol producer Proman and the Abu Dhabi Chemicals Derivatives Company (TA’ZIZ) have signed a shareholders’ agreement to develop what is stated to be the United Arab Emirates’ (UAE) first world-scale methanol production facility. The facility will be located at the TA’ZIZ Industrial Chemicals Zone in Al Ruways Industrial City in Abu Dhabi.
The companies estimate that the site will have the capacity to produce up to 1.8 million tons of methanol each year, to meet growing domestic and international demand for the chemical which has many uses, including as a low-emission fuel within the maritime sector (and other industries).
“This agreement continues to build momentum at TA’ZIZ and advances our mission to diversify the UAE’s economy and accelerate industrial development,” commented Khaleefa Yousef Al Mheiri, acting chief executive officer, TA’ZIZ.
“Our partnership with Proman underlines the UAE’s attractiveness as a destination for international partners and investors as we progress plans to produce methanol at world scale in Al Ruways. New chemicals in the UAE will enable new local supply chains and support long-term industrial growth for Abu Dhabi’s private sector.”
“We welcome the shareholders’ agreement, which is a vital next step towards Abu Dhabi’s first world-scale methanol plant,” said Richard Brink, managing director, Proman in the UAE. “As well as being Proman’s first investment in the UAE, we are working to ensure that this proposed project will be one of the most technologically advanced and low-emission natural gas-to-methanol facilities in the world. With growing global demand for methanol as a cleaner fuel, this agreement demonstrates the huge potential for the TA’ZIZ Industrial Chemicals Zone and Abu Dhabi’s evolving downstream industry.”
More than US$5bn (AED18bn) will be invested for the first development phase of TA’ZIZ, which will also see a world-scale low-carbon ammonia facility being developed with Fertiglobe, Mitsui and Co. and GS Energy. Most of the chemicals are being produced in the UAE for the first time.