UAE-based chemicals and transition fuels hub TA’ZIZ has taken the next step towards the construction of “one of the world’s largest” methanol plants by awarding an engineering, procurement, and construction (EPC) contract worth $1.7 billion to engineering company Samsung E&A.

The plant, set to be the first methanol production facility in the UAE, is located in Al Ruwais Industrial City, Al Dhafra region, Abu Dhabi.

It is projected to produce 1.8 million tons per annum (mtpa) of green methanol, powered by clean energy from the grid.

The production of methanol is scheduled to begin in 2028.

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.”

Hong Namkoong, President and CEO of SAMSUNG E&A, added: “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.