Abu Dhabi National Oil Company (ADNOC) has signed an agreement with Proman, one of the world’s leading methanol producers, to develop the UAE’s first world-scale methanol production facility at the TA’ZIZ Industrial Chemicals Zone in Ruwais, Abu Dhabi.
Under the terms of the agreement, Abu Dhabi Chemicals Derivatives Company (TA’ZIZ) and Proman will build a natural gas to methanol facility with an annual capacity of up to 1.8 million tons. The facility will support the rising local and global demand for this clean and versatile chemical commodity, which is getting momentum as a low-emission fuel as well as for other industrial uses.
TA’ZIZ is a joint venture (JV) between ADNOC and ADQ, an Abu Dhabi-based investment and holding company. The proposed partnership will capitalize upon ADNOC’s attractive value proposition for downstream petrochemicals, ADQ’s diversified portfolio and Proman’s extensive construction and operational expertise as the world’s second-largest methanol producer.
“We are pleased to welcome Proman as a strategic partner as we develop the UAE’s first domestic methanol production facility. This world-scale plant advances the TA’ZIZ mission to diversify the UAE’s economy and accelerate industrial development, by enabling local supply chains through the production of new chemicals in the UAE. As Proman’s first investment in the UAE, our agreement underscores the continued appeal of the UAE as a highly attractive destination for international capital, supporting long-term industrial growth for Abu Dhabi’s private sector.”
Mr. David Cassidy, Proman Chief Executive, said that “We look forward to bringing our full value-chain expertise to this development and expanding Proman’s global footprint to the UAE, in close partnership with ADNOC and ADQ. This will be the first methanol production facility in the UAE and will be one of the most energy-efficient and low-emitting plants in the world.”
The production of methanol in the UAE supports the Ministry of Industry and Advanced Technology’s (MoIAT) mission to diversify the UAE’s economy and accelerate industrial development. Methanol is a critical chemical building block with a wide range of industrial applications including in fuels, adhesives, solvents, pharmaceuticals and construction materials.
Emerging economies in Africa and Asia are expected to boost this growth, while methanol production in the UAE will reduce reliance on imports, allowing local manufacturers to “Make it in the Emirates” and develop more resiliency within domestic supply chains.