Ta’ziz, a strategic joint venture between the Abu Dhabi National Oil Co. and Abu Dhabi Developmental Holding Co., has awarded South Korea’s Samsung E&A a $1.7 billion engineering, procurement and construction contract to develop one of the world’s largest methanol plants in the United Arab Emirates.

According to a statement, the plant will be the UAE’s first methanol production facility to be built in Al Ruwais Industrial City in the Al Dhafra region of Abu Dhabi. With a capacity of 1.8 million tons per annum, the project is a key step in the nation’s drive toward economic diversification and industrial expansion.

“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 the 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.”

Energy-Efficient Methanol Production

The facility, scheduled for completion in 2028, will be powered by clean energy from the grid, making it one of the most energy-efficient methanol plants in the world.

Methanol, a critical feedstock for industries including plastics, textiles, and pharmaceuticals, has seen increasing global demand, positioning the UAE as a major player in its production.

Samsung E&A President and CEO Hong Namkoong emphasized the significance of the collaboration, stating, “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.”

Expanding UAE’s Chemical Industry

Ta’ziz’s broader initiative includes an initial phase of chemical production totaling 4.7 mtpa by 2028. In addition to methanol, the facility will produce low-carbon ammonia, polyvinyl chloride, ethylene dichloride, vinyl chloride monomer and caustic soda — many of which will be manufactured in the UAE for the first time.

The award of this contract represents a major milestone in the UAE’s industrialization strategy, reinforcing the country’s commitment to expanding its domestic chemical value chains while strengthening its position as a leader in sustainable and energy-efficient manufacturing.