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Adnoc Gas signs $5 billion deal to supply gas for UAE's first methanol production facility
TA’ZIZ signs upwards of $28.5 billion in agreements with different entities to support the production of methanol, PVC, EDC, VCM, caustic soda, salt and natural gas
- PUBLISHED: Tue 5 May 2026, 2:21 PM
Adnoc gas said it signed a $5 billion (Dh18.4 billion) deal with chemical producer TA’ZIZ to support the development of the UAE’s first methanol production facility in Al Ruwais City.
Methanol is a key feedstock in petrochemical production and is essential to the manufacture of products such as formaldehyde, acetic acid and fuel additives. As a transition fuel used in energy generation and maritime shipping, methanol is increasingly central to global low-carbon energy solutions.
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Adnoc will start supplying its natural gas from 2029, and will range from five to 25 years to secure both global offtake and reliable local natural gas feedstocks. It will deliver these to TA’ZIZ's methanol production facility in Abu Dhabi.
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The chemical producer has also agreed on a 20-year salt supply agreement with Abu Dhabi-based Sama Salt to support production at its polyvinyl chloride (PVC) complex. PVC is a versatile thermoplastic used extensively across construction, electrical, medical, packaging and consumer sectors, with ethylene dichloride (EDC) and vinyl chloride monomer (VCM) serving as essential raw materials in its production.
On Tuesday, TA’ZIZ announced it signed upwards of $28.5 billion (Dh104.6 billion) in agreements with different entities to support the production of methanol, PVC, EDC, VCM, caustic soda, salt and natural gas.
The deals, signed on the second day of Make it in the Emirates, include sale agreements with Adnoc and Proman for methanol; Emirates Global Aluminium (EGA) for caustic soda; Mitsubishi Corporation for EDC, VCM and caustic soda; Mitsui & Co. for EDC and caustic soda; Sanmar Group for EDC and VCM; Tricon for PVC, EDC and caustic soda; and Vinmar for EDC and PVC.
The agreement with EGA for around 200,000 dry metric tons per year of caustic soda marks a crucial milestone in the country’s journey toward industrial self-sufficiency. TA’ZIZ’s caustic soda supply makes it the first major supplier of domestically produced caustic soda for EGA’s Al Taweelah alumina refinery in Khalifa Economic Zones Abu Dhabi (KEZAD).
Mashal Saoud Al-Kindi, CEO of TA’ZIZ, said, “By securing both global demand and reliable local feedstock, we are translating vision into delivery, anchoring world-scale chemicals production, strengthening domestic value chains and creating enduring economic value, jobs and supply-chain resilience for the UAE."
Hind Aldah is a business reporter based in Sharjah. In her spare time, you will find her playing classical guitar, painting amateur oil paintings, or crocheting the same old scarf that leads nowhere.