UAE to build its first methanol production facility in Abu Dhabi

UAE to build its first methanol production facility in Abu Dhabi

The Abu Dhabi National Oil Company (ADNOC) has signed an agreement with the world’s world’s second-largest methanol producer Proman to develop the UAE’s first methanol production facility. The facility will be located at the Ta’ziz Industrial Chemicals Zone in Ruwais, Abu Dhabi, and the project is subject to relevant regulatory approvals. Ta’ziz is a joint venture between ADNOC and ADQ, an Abu Dhabi-based investment and holding company. By way of the agreement, Abu Dhabi Chemicals Derivatives Company (Ta’ziz) and Proman will construct a natural gas to methanol facility with an anticipated annual capacity of up to 1.8 million tons per annum, according to state news agency . Methanol has several industrial applications, including in fuels, adhesives, solvents, pharmaceuticals and construction materials. Growth in demand for it is anticipated to be driven by emerging economies in Africa and Asia, with the new methanol production facility in the UAE expected to also support decreased reliance on imports, enabling local manufacturers to “Make it In the Emirates” and establish greater resiliency among domestic supply chains. “This world-scale plant advances the TA’ZIZ mission to diversify the UAE’s economy and accelerate industrial development, by enabling local supply chains to produce new chemicals in the UAE.