TA’ZIZ partnership secures financing for Ruwais methanol plant

Abu Dhabi Chemicals Derivatives Co. RSC Ltd. (TA’ZIZ)—a joint venture of Abu Dhabi National Oil Co. (ADNOC) and Abu Dhabi Developmental Holding Co. PJSC (ADQ)—alongside partner Proman AG have closed on $2 billion in financing for their jointly held TA’ZIZ Methanol Co.’s methanol production project at the integrated downstream industrial platform of the TA’ZIZ Industrial Chemicals Zone in Ruwais Industrial City, Al Dhafra, Abu Dhabi.

Confirmed via separate May 7 releases from ADNOC and Proman, the oversubscribed financing package includes a 5-year $1.8-billion conventional syndicated loan and distinct $200-million financial facility, underscoring strong global confidence in TA’ZIZ’s broader Ruwais industrial platform, as well as longer-term demand for methanol as a key chemical and cleaner-burning fuel for transportation and power generation, the partners said.

Alongside announcing close of the financial transaction, Proman also confirmed it has entered into a long-term offtake agreement with TA’ZIZ Methanol, under which Houston-based Valenz AG—Proman’s marketing arm—will hold exclusive rights to market the plant’s production to both domestic and international customers.

Now under construction with Samsung E&A Co. Ltd. acting as engineering, procurement, and construction (EPC) contractor, the methanol plant—which will become the UAE’s first upon startup— is designed with a nameplate production capacity of 1.8 million tonnes/year (tpy) to help meet growing domestic and international demand for methanol as a cleaner fuel and chemical building block in industrial applications such as adhesives, solvents, pharmaceuticals, and construction materials.

With development and construction activities progressing smoothly, the new methanol plant is targeted for completion in third-quarter 2028, Proman said.

Confirmation of close of financing for TA’ZIZ Methanol’s plant follows a series of announcements from ADNOC earlier in the week regarding projects under development at the TA’ZIZ Ruwais integrated downstream industrial platform.

These included signing of a strategic collaboration agreement—valued at about $10 billion in capital investment—that could result in production 14 new chemicals at the platform, as well as securing of $28.5 billion in long-term commercial agreements covering offtake, feedstock supply, and product sales across the industrial ecosystem.

Phase 1 of TA’ZIZ’s platform is scheduled for formal commissioning by yearend 2028 with a combined chemical production capacity of 4.7 million tpy of marketable products.