TA’ZIZ Methanol Company has secured $2bn in financing for the UAE’s first world-scale methanol plant, as methanol producers expand capacity aimed at chemicals markets and marine fuel supply.
The financing, secured by the TA’ZIZ Methanol Company, a joint venture between TA’ZIZ and Proman, will support construction of a 1.8m tonne-per-year methanol facility at Al Ruwais Industrial City in Abu Dhabi. Operations are scheduled to begin in 2028.
The package includes a $1.8bn five-year syndicated loan and a $200m Islamic financing facility backed by 11 regional, European and Asian financial institutions.
Sumitomo Mitsui Banking Corporation acted as financial adviser, while Abu Dhabi Commercial Bank and First Abu Dhabi Bank served as bookrunners and mandated lead arrangers.
Methanol-fuelled vessel orders have increased in recent years in the container segment, a trend which is reflected in tanker markets, which is supported by increased orders for dual-fuel vessels.
‘This is a significant step forward for the project and a major advancement in our partnership with TA’ZIZ,’ said David Cassidy, chief executive of Proman. ‘The strong interest in this transaction underscores market confidence in methanol’s growth trajectory, both as a key chemical and as a cleaner burning fuel for transportation and power generation.’
Proman has also secured a long-term offtake agreement giving its marketing arm, Valenz, exclusive rights to market the plant’s output globally once operational.
The financing follows earlier project milestones including final investment decisions by ADNOC, TA’ZIZ and Proman, alongside the award of the engineering, procurement and construction contract to Samsung E&A. The Ruwais project forms part of Abu Dhabi’s industrial strategy centred on chemicals, fuels and energy-related infrastructure.
Mashal Saoud Al-Kindi, chief executive of TA’ZIZ, said: ‘This landmark financing marks a defining moment for TA’ZIZ and for Abu Dhabi’s next phase of industrial growth. The strong global demand for this transaction reflects our disciplined execution, the strength of our partnerships, and the long-term fundamentals of the Ruwais industrial ecosystem.’
