Ta’ziz secures $2bn for Abu Dhabi methanol plant
Ta’ziz, a joint venture between state-backed oil giant Abu Dhabi National Oil Company (Adnoc) and sovereign wealth fund ADQ, said it has secured $2 billion in funding for its first methanol plant in Al Ruwais Industrial City.
The financing was secured from a banking consortium comprising 11 regional, European and Asian financial institutions, the company said in a statement released at the Make it in the Emirates forum on Thursday.
The package includes a five-year, $1.8 billion conventional syndicated loan and a $200 million Islamic facility. Both facilities were priced in line with international benchmarks, but no details were given.
Sumitomo Mitsui Banking Corporation acted as the exclusive financial adviser, while Abu Dhabi Commercial Bank and First Abu Dhabi Bank served as bookrunners and mandated lead arrangers.
The engineering, procurement and construction contract was awarded to South Korea’s Samsung E&A in February 2025.
Construction of the methanol plant, being developed in collaboration with Swiss-based Proman, is progressing with completion targeted for 2028.
In its initial phase, Ta’ziz will produce 4.7 million tonnes per annum (mtpa) of chemicals by 2028, including 1.8 mtpa of methanol, low-carbon ammonia, polyvinyl chloride, ethylene dichloride, vinyl chloride monomer and caustic soda.
Ta’ziz closed several long-term agreements with local companies to back the UAE’s chemicals industry during the event.
The deals included offtake, feedstock and sale contracts with terms of five to 25 years across its chemicals portfolio, valued at AED105 billion ($29 billion), the joint venture said in a statement.
Further reading:
- Cautious capital, closer factories: UAE set for supply-chain shift
- Adnoc and Taqa accelerate large-scale chemical production in UAE
- Adnoc L&S to build $300m chemicals port in Abu Dhabi
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