TA'ZIZ advances Phase One chemicals projects with major financing, long-term agreements, and 2028 completion targets despite geopolitical uncertainty.
TA'ZIZ, a joint venture between ADNOC and state investor ADQ, is making significant strides in the development of its ambitious industrial chemicals complex in Al Ruwais Industrial City, Abu Dhabi. Recent announcements confirm that Phase One of the chemicals projects remains firmly on track for completion by 2028, underscoring strong global confidence despite broader geopolitical uncertainties.
A major milestone achieved by TA'ZIZ Methanol Company, a partnership with Proman, is the successful financial close on a $2 billion financing deal for the UAE's first world-scale methanol plant. This oversubscribed transaction, secured from 11 leading regional, European, and Asian financial institutions, signals robust investor appetite for Abu Dhabi's industrial expansion strategy. The Engineering, Procurement, and Construction (EPC) contract has been awarded to Samsung E&A Co. Ltd., with construction already underway and commercial operations targeted for 2028.
Further reinforcing its progress, TA'ZIZ has signed long-term agreements valued at 28.5 billion across its chemicals portfolio. These agreements, spanning five to 25 years, secure feedstock supply, global offtake, and product sales for key chemicals such as methanol, polyvinyl chloride (PVC), ethylene dichloride (EDC), vinyl chloride monomer (VCM), caustic soda, salt, and natural gas. Notably, a 25-year natural gas feedstock supply deal with ADNOC Gas for the methanol project alone is valued at over 5 billion. An additional strategic collaboration with Alpha Dhabi Holding targets approximately $10 billion in proposed new industrial chemicals investments, potentially adding 2.2 million tonnes per annum of new capacity and up to 14 new chemicals, including styrene, polystyrenes, and acrylic acid derivatives.
The completion of Phase One, expected by the end of 2028, will see TA'ZIZ producing approximately 4.7 million metric tons annually of marketable products, including 1.8 million tonnes/year of methanol, 1 million tonnes/year of low-carbon ammonia (expected by 2027), and 1.9 million tonnes/year of PVC, EDC, VCM, and caustic soda.
The economic impact of these projects is substantial. They are central to the UAE's long-term strategy of strengthening domestic manufacturing, enhancing supply-chain resilience, and achieving industrial self-sufficiency, aligning with the "Make it in the Emirates" initiative. Phase One alone is projected to contribute $50 billion to the UAE economy. By anchoring world-scale chemicals production, TA'ZIZ aims to enable import substitution and create new economic prospects, positioning Abu Dhabi as a globally competitive industrial hub and a future global hub for methanol production. This also reflects a broader geopolitical and industry-specific shift across the Gulf region, where hydrocarbon-producing economies are diversifying into downstream industrial manufacturing and chemical value chains.
