Abu Dhabi National Oil Company (ADNOC) 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 TAZIZ Industrial Chemicals Zone in Ruwais, Abu Dhabi.
Under the agreement, Abu Dhabi Chemicals Derivatives Company (TAZIZ) and Proman will construct a natural gas to methanol facility with an anticipated annual capacity of up to 1.8 million tons per annum.
The facility will meet growing domestic and international demand for this clean and versatile chemical commodity, gaining momentum as a lower-emission fuel alongside existing uses spanning industrial products.
UAE's Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC, Sultan al-Jaber, welcomed Proman as a strategic partner in developing the UAE's first domestic methanol production facility.
Jaber stated that this world-scale plant advances the TAZIZ mission to diversify the UAE's economy and accelerate industrial development by enabling local supply chains to produce new chemicals.
Proman Chief David Cassidy asserted that the company is looking forward to bringing its complete value-chain expertise to this development and expanding its 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 world's most energy-efficient and low-emitting plants," Cassidy was quoted by WAM.
Cassidy explained that global interest in methanol as a cleaner fuel, particularly for the shipping sector, is set to drive a significant increase in worldwide methanol demand over the coming decade, adding that it is a particularly opportune time to invest in the UAE's domestic downstream production capacity.
Methanol is a critical chemical building block with many industrial applications, including fuels, adhesives, solvents, pharmaceuticals, and construction materials.
Growth is expected to be driven by emerging economies in Africa and Asia, while methanol production in the UAE will support decreased reliance on imports, enabling local manufacturers to "Make it In the Emirates" and establish resiliency among domestic supply chains.
TAZIZ comprises three industrial zones. The first is an Industrial Chemicals Zone that will host chemical production, with seven proposed world-scale projects already in the design phase.
The second is the Light Industrial Zone, which will be home to downstream conversion industries that will convert the outputs of the Industrial Chemicals Zone into consumable products.
The third is an Industrial Services Zone that will house various companies providing the necessary services required by the TAZIZ industrial zones and the more comprehensive Ruwais Industrial Complex.
