Adnoc, Switzerland's Proman to build methanol plant in Ruwais industrial hub

Abu Dhabi National Oil Company signed an agreement with Swiss company Proman March 3 to build a methanol facility within a manufacturing zone located in the UAE's downstream hub in Ruwais, the company said in a statement.

Abu Dhabi Chemicals Derivatives Company, also called Ta'ziz -- a joint venture between Adnoc and holding company ADQ -- will build the methanol facility with Proman. The plant is expected to have a capacity to produce up to 1.8 million mt methanol annually.

The project is likely to be completed before end-2025, according to an Adnoc spokesperson. The development of the new methanol plant is subject to pending regulatory approvals, the company said in a statement.

The scheme is set to meet "growing domestic and international demand" for methanol as a "a lower-emission fuel", Adnoc said.

Methanol finds a number of uses in industrial applications, including manufacturing of fuels, adhesives and pharmaceuticals.

The Ta'ziz manufacturing hub includes three zones focusing on the development of chemicals, downstream conversion, and industrial services.

Adnoc is also building a 1,000 kiloton per annum blue ammonia facility in the Ta'ziz hub. Fertiglobe is an Adnoc JV with Netherlands-listed chemicals company OCI, and South Korea's GS Energy and Japan's Mitsui are partners in developing low-carbon ammonia.

India's Reliance Industries has also signed an agreement worth $2 billion to develop chemical compounds, such as ethylene dichloride, chlor-alkali, and polyvinyl chloride in Ruwais.