Abu Dhabi Chemicals Derivatives Company RSC Ltd (TA’ZIZ) and PROMAN AG (Proman) 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 tons 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.
Methanol production in the UAE is in line with the Ministry of Industry and Advanced Technology’s mission to diversify the UAE’s economy and accelerate industrial development. Growth of this versatile chemical is expected to be driven by emerging economies in Africa and Asia, while in the UAE it will support decreased reliance on imports, enabling local manufacturers to “Make it In the Emirates” and establish greater resiliency among domestic supply chains.
TA’ZIZ continues to advance at pace 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 LLC (Shaheen). Fertiglobe, Mitsui & Co., Ltd (Mitsui) and GS Energy Corporation (GS Energy) are also partnering with TA’ZIZ to develop a world-scale low-carbon ammonia facility.
The total investment in the first phase of TA’ZIZ will be in excess of USD 5bn (AED 18bn), with most of the chemicals produced in the UAE for the first time. All agreements are subject to regulatory approvals.