Abu Dhabi National Oil Company (ADNOC), the state-owned oil company of the United Arab Emirates, and Proman, one of the world’s largest methanol producers, and a leading fertilizer producer globally have signed an agreement to develop the 1st Methanol production facility in UAE.
The terms of the agreement describe that Proman and Abu Dhabi Chemicals Derivatives Company RSC Ltd. (“TAZIZ”), a joint venture between Abu-Dhabi-based investment and holding company, ADQ, and ADNOC will build the natural gas to methanol facility at the TAZIZ Industrial Chemicals Zone in Ruwais.
The promising partnership is aimed at capitalizing upon ADNOC’s exceptional value proposition for downstream petrochemicals. Proman’s extensive construction and operational expertise coupled with ADQ’s versatile portfolio is giving signs of an achieving team.
Managing director and group ADNOC CEO, Sultan Ahmed Al Jaber, that is also UAE Minister of Industry and Advanced Technology said that they were pleased to welcome Proman onboard as a strategic partner in developing the first Methanol Production Facility in the UAE.
The 1st Methanol Production Facility in UAE to meet domestic and international demands for methanol
The anticipated annual capacity for the 1st Methanol Production Facility in UAE, the final investment decision of which is expected to be concluded later in the year, is projected to reach up to 1.8 million tonnes per annum.
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With both domestic and international demand, methanol is considered to be a clean and versatile chemical commodity that is gaining momentum as a lower-emission fuel. The 1st Methanol Production Facility in the UAE is projected to meet domestic and international demands for methanol.
Proman’s Chief Executive, David Cassidy, acknowledges that the growing global interest in methanol can be attributed to it being a cleaner fuel. He also expressed that increased production of methanol in the UAE will lead to decrease reliance on imports. This would then lead to enabling the local manufacturer(s) to attain a reasonable market share from local demand.
