TA’ZIZ has signed an engineering, procurement and construction (EPC) contract with SAMSUNG E&A to construct  one of the world’s largest methanol plants in Al Ruwais Industrial City in Abu Dhabi. The plant is expected to produce 1.8 million tons per annum (mtpa) of methanol.

Upon completion in 2028, the plant will be powered by clean energy from the grid, making it one of the world’s most energy-efficient methanol plants.

The project, valued at $1.7 billion, is a key milestone in TA’ZIZ’s mission to advance the UAE’s economic diversification by unlocking new domestic chemical value chains, as ADNOC said on Monday.

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, many of which will be produced for the first time in the UAE.

“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,” said Mashal Saoud Al-Kindi, CEO of TA’ZIZ.

“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,” Al-Kindi added.

For his part, 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.”