TA’ZIZ awards $1.7b contract to Samsung E&A to build UAE’s first methanol plant

TA’ZIZ announced on Monday an engineering, procurement and construction (EPC) contract award of $1.7 billion (AED6.2 billion) to Samsung E&A for the construction of one of the world’s largest methanol plants in Al Ruwais Industrial City, Al Dhafra region, Abu Dhabi.

The project is a key milestone in TA’ZIZ’s mission to advance the UAE’s economic diversification by unlocking new domestic chemical value chains. The 1.8 million tons per annum (mtpa) plant will be the first methanol production facility in the UAE. Upon completion in 2028, it will be powered by clean energy from the grid, making it one of the world’s most energy-efficient methanol plants.

Mashal Saoud Al-Kindi, CEO of TA’ZIZ, said: “This landmark EPC contract award is a significant step in realizing TA’ZIZ’s vision to drive the UAE’s industrial growth by creating a world-scale integrated chemicals ecosystem in Al Dhafra region. The 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.”

Driving industrial innovation

Hong Namkoong, President and CEO of Samsung E&A, said: “SAMSUNG E&A is honored to receive this recognition, highlighting TA’ZIZ’s and our commitment to driving industrial innovation, diversifying the UAE's economy, and enabling sustainable growth. This milestone underscores the power of collaboration in creating world-scale facilities that will position the UAE as a global hub for advanced methanol production.”

In its initial phase, TA'ZIZ will produce 4.7 mtpa of chemicals by 2028, including methanol, low-carbon ammonia, polyvinyl chloride (PVC), ethylene dichloride, vinyl chloride monomer, and caustic soda. Several of these chemicals will be produced for the first time in the UAE, reinforcing TA’ZIZ’s strategic goal to expand the local chemicals value chain and advance economic diversification through industrialisation.

A critical enabler of the UAE’s industrial development and economic diversification ambitions, TA’ZIZ was founded in 2020 as a joint venture between ADNOC and ADQ, and the world-scale methanol plant marks a milestone in ADNOC’s chemicals growth strategy and the expansion of its lower-carbon fuels business.

The methanol contract follows the announcement in November 2024 of over $2 billion in contracts for essential site infrastructure, including utilities and a chemicals terminal at the TA’ZIZ complex.