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$1.7bn contract awarded for UAE’s first methanol plant

UAE methanol Hong Namkoong, President and CEO of Samsung E&A and Mashal Saoud Al-Kindi, CEO of Ta’ziz at the EPC contract award ceremony Adnoc
Hong Namkoong, President and CEO of Samsung E&A and Mashal Saoud Al-Kindi, CEO of Ta’ziz at the EPC contract award ceremony

A joint venture between Abu Dhabi National Oil Company (Adnoc) and the state-owned sovereign wealth fund Abu Dhabi Developmental Holding Company (ADQ) has awarded an AED6.2 billion ($1.7 billion) contract to build the UAE’s first methanol production facility.

The joint venture, Ta’ziz, has granted an engineering, procurement and construction (EPC) contract to South Korea’s Samsung E&A to establish one of the world’s largest methanol facilities in Al Ruwais Industrial City, 240km (150 miles) west of Abu Dhabi City.

Upon completion in 2028, the facility will produce 4.7 million tonnes per annum (mtpa) of chemicals, including low-carbon ammonia, polyvinyl chloride, ethylene dichloride, vinyl chloride monomer and caustic soda. Methanol production at the UAE plant will be almost 1.8 mtpa.

Several of these chemicals will be produced for the first time in the UAE, Adnoc said.

The facility will be powered by clean energy, making it one of the world’s most energy-efficient methanol plants.

In November 2024, Ta’ziz awarded EPC contracts valued at more than $2 billion to develop essential site infrastructure for the facility.

Late last year, the state-owned Adnoc launched XRG, a new global lower-carbon energy and chemicals investment company valued at more than $80 billion.