South Korea-based Samsung E&A has secured an engineering, procurement, and construction (EPC) contract worth $1.7bn from TA’ZIZ pertaining to the Ruwais Industrial Complex in the UAE.
As per the letter of award (LOA) received by Samsung E&A, the contract is for the construction of a methanol plant. To be part of the TA’ZIZ chemicals and transition fuels ecosystem, the new facility is intended to produce 1.8 million tons per annum of methanol.
The duration of the contract is 44 months.
Samsung E&A said that it will use the experience gained through the recent completion of a Malaysian methanol plant.
Samsung E&A president and CEO Hong Namkoong said: “We plan to actively leverage local resources and our network of partners based on our extensive regional experience in the Ruwais Industrial Complex, UAE.
“Samsung E&A will ensure the project’s success by applying our differentiated execution system, which integrates our innovative technologies such as modularisation and automation.”
Set to become the first methanol production plant in the UAE, the facility is expected to be operated using clean energy transmitted by the grid. The plant’s completion is expected in 2028.
TA’ZIZ CEO Mashal Saoud Al-Kindi said: “This landmark EPC contract award is a significant step in realising TA’ZIZ’s vision to drive the UAE’s industrial growth by creating a world-scale integrated chemicals ecosystem in Al Dhafra region.
“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, which is a joint venture (JV) between ADNOC and ADQ, is collaborating with various private UAE-based institutions to grow the country’s role in the global chemicals industry.
Last November, TA’ZIZ awarded contracts worth more than $2bn to develop key infrastructure for a chemicals and transition fuels project in Al Ruwais Industrial City.
TA’ZIZ is expected to commence in 2027, aiming for an output of 4.7 million tonnes of chemicals per year by 2028. The range of chemicals to be produced includes several new to the UAE market, supporting sectors such as construction, agriculture, and healthcare.
During its initial phase, TA’ZIZ will produce caustic soda, vinyl chloride monomer, ethylene dichloride, low-carbon ammonia, and polyvinyl chloride, in addition to methanol.
