ADNOC’s TA’ZIZ lets EPC contract for methanol plant

Abu Dhabi Chemicals Derivatives Co. RSC Ltd. (TA’ZIZ)—a joint venture of Abu Dhabi National Oil Co. (ADNOC) and Abu Dhabi Developmental Holding Co. PJSC (ADQ)—has let a contract to Samsung E&A Co. Ltd. to build the UAE’s first methanol plant at the TA’ZIZ chemicals and transition fuels ecosystem (TCTFE) under development in the Ruwais industrial complex of Al Ruwais Industrial City, in Abu Dhabi’s Al Dhafra region (OGJ Online, Jan. 5, 2023).

As part of a Jan. 31 contract, Samsung E&A will deliver engineering, procurement, and construction (EPC) services for the grassroots natural gas-to-methanol plant that will be equipped with a nameplate production capacity of 1.8 million tonnes/year (tpy), according to a series of separate early February releases from the service provider, TA’ZIZ, and ADNOC.

Samsung E&A said its scope of work under the $1.7-billion, 44-month contract award will include integration of the service provider’s proprietary technologies involving modularization and automation.

Chemicals production 

To be powered by clean energy from the regional grid, the planned methanol project—slated to become one of the most energy efficient and low-emissions plant of its kind—is scheduled to begin production in 2028 to help meet growing domestic and international demand for methanol as a cleaner fuel and chemical building block in industrial applications such as adhesives, solvents, pharmaceuticals, and construction materials, ADNOC and its TA’ZIZ methanol project strategic partner Proman AG said in various releases dating back to 2022.

Upon announcing the EPC contract, Mashal Saoud Al-Kindi—TA’ZIZ’s chief executive officer—said advancing the methanol project at the TCTFE marks a major step in realizing TA’ZIZ’s vision of driving the UAE’s industrial growth by creating a world-scale integrated chemicals ecosystem in Al Dhafra region.

“The [methanol] plant will enhance the UAE’s position as a leader in sustainable chemicals production and strengthen TA’ZIZ’s role in enabling ADNOC’s global ambition to lead the chemicals sector,” Al-Kindi added.

The methanol project comes as part of TA’ZIZ’s ongoing first-phase development, which alongside methanol, also will include plants designed to produce 1 million tpy of low-carbon blue ammonia and 1.9 million tpy combined of polyvinyl chloride, ethylene dichloride, vinyl chloride monomer, and caustic soda, TA’ZIZ and ADNOC said.

At an overall investment of more than $5 billion, TA’ZIZ’s Phase 1 is due for startup by 2028 with an overall chemical production capacity of 4.7 million tpy, the operator and its parent company said.

TA'ZIZ formation, future development

Formally established in late-2020, TA’ZIZ was specifically formed to drive development of industrial projects within Ruwais by setting the foundation for manufacturing hundreds of new end-products in the UAE for the first time, as well as unlocking further diversification and industrialization opportunities in the country, TA’ZIZ and ADNOC said in May 2024 and November 2020 releases, respectively.

TA’ZIZ also confirmed in May 2024 that it has initiated the design process for a future multibillion-dollar expansion of its industrial site that, if completed, will more than double its Phase 1 production capacity, as well as include expanded decarbonization measures via implementation of additional clean-power and carbon-capture technologies.

According to the operator’s website, TA’ZIZ’s plans for the TCTFE by 2031 include:

• Doubling production of low-carbon blue ammonia.
• Expanding production of methanol by an undisclosed volume.
• Installation of a low-carbon steam cracker.
• Initiating production of linear alpha olefins, ethylene oxide, monoethylene glycol, ethylene vinyl acetate, vinyl acetate monomer, and styrene.