Taziz and Proman Forge Ahead to Establish UAE's First Methanol Unit

ABU DHABI (UAE): Taziz and Proman, a top global producer of methanol, have inked a shareholders’ accord to launch the UAE’s first ever world-class Methanol production plant at the Taziz Industrial Chemicals Zone in Al Ruways Industrial City, Abu Dhabi.

Taziz announced that their upcoming facility, boasting an annual capacity of up to 1.8 million tonnes, will cater to the ever-growing demand for this clean and multipurpose chemical commodity both domestically and internationally.

Methanol has a wide range of applications, from fuels and solvents to pharmaceuticals and construction materials. It also holds increasing potential as a lower-emission fuel source, particularly for maritime operations.

Taziz Acting CEO Khaleefa Yousef Al Mheiri stated that this agreement furthers the organization's mission to diversify the UAE’s economy and expedite its industrial development, providing a great boost for Taziz.

"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," he noted.

Taziz is progressing swiftly, with site preparations and a Joint Venture incorporation agreement for the development of a world-scale ethylene dichloride (EDC), chlor-alkali, polyvinyl chloride (PVC) production facility now signed off between Reliance Industries Limited and Shaheen Chem Holdings Investments (Shaheen).

Fertiglobe, Mitsui & Co., Ltd (Mitsui) and GS Energy Corporation (GS Energy) are also joining forces with Taziz to construct an expansive and low-carbon ammonia plant. This first phase of the project will cost over $5 billion, with many of the chemicals being produced in the UAE for the first time. All contracts are subject to regulatory approval.

Launched in 2020 by Adnoc and ADQ, Taziz is leading the charge for growth in Al Ruways Industrial City, as well as Abu Dhabi's expansive chemical, manufacturing, and industrial sectors. Methanol production in the UAE is part of the Ministry of Industry and Advanced Technology's mission to diversify the country's economy and spur on industrial advancement.

Growth of this versatile chemical is expected to be spurred on by robust economies in Africa and Asia. In the UAE, this development will help reduce dependence on imports, giving local manufacturers an opportunity to "Make it In the Emirates" and bolster domestic supply chains.

Praising the agreement, Richard Brink, Managing Director Proman in the UAE, expressed: "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 Taziz Industrial Chemicals Zone and Abu Dhabi’s evolving downstream industry," he added.