Abu Dhabi Chemicals Derivatives Company RSC (Ta’ziz) and Proman, a leading producer of methanol, have signed a shareholders’ agreement to develop the UAE’s first world-scale methanol production facility at the Ta’ziz Industrial Chemicals Zone in Al Ruways Industrial City, Abu Dhabi.
The facility has an anticipated annual capacity of up to 1.8 million tonnes and will meet growing domestic and international demand for this clean and versatile chemical commodity. Methanol has a variety of uses including in fuels, solvents, pharmaceuticals and construction materials and has growing potential as a lower-emission fuel, particularly in the maritime sector.
Khaleefa Yousef Al Mheiri, Ta’ziz Acting Chief Executive Officer, said: “This agreement continues to build momentum at Ta’ziz and advances our mission to diversify the UAE’s economy and accelerate industrial development. 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.”
Methanol production in the UAE is in line with the Ministry of Industry and Advanced Technology’s mission to diversify its economy and accelerate industrial development.
Richard Brink, Managing Director Proman in the UAE, said: “We welcome the shareholders’ agreement, which is a vital next step towards Abu Dhabi’s first world-scale methanol plant. 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.”
Ta’ziz continues to advance with site preparation underway and a Joint Venture incorporation agreement for the development of a world-scale ethylene dichloride (EDC), chlor-alkali, polyvinyl chloride (PVC) production facility signed with Reliance Industries Limited and Shaheen Chem Holdings Investments, Fertiglobe, Mitsui and GS Energy Corporation are also partnering with Ta’ziz to develop a world-scale low-carbon ammonia facility.