DUBAI (Reuters) – Abu Dhabi’s TA’ZIZ said on Monday it has awarded a $1.7 billion contract to Samsung E&A to build the UAE’s first methanol plant, which is expected to produce 1.8 million tons of methanol every year upon completion in 2028.
TA’ZIZ, a joint venture between Abu Dhabi state oil giant ADNOC and sovereign fund ADQ, was launched in 2020 to foster the development of new chemical industries in the country.
“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,” TA’ZIZ CEO Mashal Saoud Al-Kindi said in a statement.
ADNOC views chemicals, alongside natural gas and renewable energy, as a key pillar for its growth. Last year, it struck a deal to acquire German chemicals maker Covestro for 14.7 billion euros ($15.05 billion), including debt.
ADNOC has also been in talks with Austria’s OMV since at least mid-2023 to combine their polyolefin businesses, Borouge and Borealis, which would create a group with more than $20 billion in annual sales.
They disclosed last week that they are considering acquiring Nova Chemicals from Mubadala, another Abu Dhabi wealth fund, as part of the deal.
($1 = 0.9769 euros)
(Reporting by Yousef Saba; Editing by Sherry Jacob-Phillips)
