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Major contract awarded for methanol facility in UAE

28 May, 2025
Wood wins major UAE methanol contract



Wood has been awarded a major project management consultancy (PMC) contract by TA’ZIZ for the development of the United Arab Emirates’ first methanol production facility, a project set to reshape the nation’s industrial resources landscape.

The new plant, located in Al Ruwais Industrial City, Abu Dhabi, is slated for completion by 2028 and will rank among the world’s largest methanol production sites, with a planned annual capacity of 1.8 million tonnes.

This facility marks a significant milestone for the UAE’s chemicals sector, establishing a domestic supply of methanol — a key feedstock for a range of industries, including petrochemicals, plastics, and alternative fuels.

By powering the plant with the latest clean energy technology, the project is designed to be one of the most energy-efficient methanol plants globally, supporting the country’s ambitions for sustainable industrial growth.

The contract underscores Wood’s growing presence in the Middle East’s energy and chemicals market.

Around 40 of Wood’s project management consultants, supported by specialists from the company’s regional energy transition hub, will work closely with TA’ZIZ’s engineering, procurement, and construction (EPC) contractor to deliver the project.

This collaborative approach aims to ensure the facility’s timely delivery and operational excellence, leveraging Wood’s expertise in large-scale, complex chemical infrastructure.

Gerry Traynor, President of Eastern Hemisphere Projects at Wood, emphasised the significance of this win: “Wood is continuing to deliver complex projects at scale for our clients in the Middle East region, a key strategic growth region.

“This win with TA’ZIZ is testament to our world-class expertise in downstream chemical facilities and extensive project management capabilities.

“We are proud to support TA’ZIZ on this significant project for the UAE.”

The methanol plant is a cornerstone of TA’ZIZ’s broader strategy to diversify the UAE’s economy and expand its domestic chemicals value chain.

In its initial phase, TA’ZIZ aims to produce 4.7 million tonnes per annum of chemicals by 2028, including methanol, low-carbon ammonia, and other key products, many for the first time in the UAE.

The project is expected to attract further investment in downstream industries and strengthen the nation’s position as a regional hub for sustainable chemicals production.

As the UAE accelerates its industrial transformation, the Al Ruwais methanol facility stands out as a flagship example of resource development aligned with global energy transition goals.

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