Samsung E&A awarded a $1.7 billion contract by TA'ZIZ for the UAE's first methanol facility

Abu Dhabi's TA'ZIZ announced on Monday that it had awarded a $1.7billion contract to Samsung E&A for the construction of the UAE's 1st methanol facility. The plant is expected to produce 1.8m tons of methanol annually upon completion in 2028.

TA'ZIZ is a joint venture of Abu Dhabi's state oil giant ADNOC with the sovereign fund ADQ. It was launched in 2020 in order to promote the development and growth of the new chemical industries.

The plant will strengthen the UAE's leadership position in the sustainable chemical production sector and TA'ZIZ's ability to support ADNOC's global ambitions in the chemicals industry, said TA'ZIZ's CEO Mashal Saoud Al-Kindi in a press release.

ADNOC sees chemicals as an important pillar of its growth, along with natural gas and renewable energies. It struck a deal last year to buy German chemicals manufacturer Covestro, including debt, for 14.7 billion euro ($15.05billion).

ADNOC and Austria's OMV have been in discussions since at least the middle of 2023 about combining their polyolefin companies, Borouge, and Borealis. This would create a company with a sales volume exceeding $20 billion.

Last week, they announced that as part of this deal, they were considering buying Nova Chemicals, a company owned by Mubadala (another Abu Dhabi wealth fund).

(source: Reuters)