meed-logo

line1 line2 line3
SIGN IN / REGISTER

Samsung E&A wins $1.7bn Abu Dhabi methanol project

3 February 2025

Abu Dhabi’s Taziz has awarded South Korean contractor Samsung E&A the main engineering, procurement and construction (EPC) contract to build the UAE’s first methanol plant in the Taziz Industrial Chemicals Zone in Ruwais Industrial City.

The nameplate production capacity of the planned methanol complex is 5,000 metric tonnes a day, or 1.8 million metric tonnes a year (t/y).

Switzerland-based energy and chemicals company Proman is a joint investor in the methanol project.

The value of the EPC contract won by Samsung E&A is $1.7bn, with the duration of works being 44 months.

“Upon completion in 2028, it will be powered by clean energy from the grid, making it one of the world’s most energy-efficient methanol plants,” Taziz said in a statement on 3 February.

MEED had in November reported about Samsung E&A emerging as the frontrunner to win the main EPC contract for the project.

The only other bidder for the project is a consortium of French contractor Technip Energies and India-based Larsen & Toubro Energy Hydrocarbon.

The two entities submitted technical bids for the project by the deadline of 22 July, and commercial bids by the deadline of 16 September.

Methanol is a critical chemical building block with industrial applications in fuels, adhesives, solvents, pharmaceuticals and construction materials. Emerging economies in Africa and Asia are expected to drive growth in methanol demand, while methanol production in the UAE will reduce reliance on imports.

Proman signed a shareholder agreement with Taziz for the planned methanol project in January 2023. The two companies initially announced the project in March 2022.

Technip Energies has performed the front-end engineering and design (feed) work on the methanol project, having won the contract in September 2022.

The Proman/Taziz joint venture (JV) had issued the expressions of interest document to contractors for the methanol project’s EPC tendering exercise in August 2023. Contractors submitted prequalification documents by 21 August.

Proman and Taziz issued the main tender for EPC works on the planned methanol project on 17 January, last year. The JV initially set a deadline of 17 April for the submission of technical bids, which was then extended to 17 June, and later to 22 July.

Taziz chemical investments

Taziz, a 60:40 JV of Abu Dhabi National Oil Company (Adnoc Group) and Abu Dhabi’s industrial holding entity ADQ, has attracted investments from several foreign investors for its chemicals projects in the under-construction petrochemical derivatives complex in Ruwais.

Adnoc first announced in May 2021 that it would proceed with developing a “world-scale” blue ammonia production facility in Abu Dhabi’s industrial hub of Ruwais.

UAE-based Fertiglobe, South Korea’s GS Energy Corporation and Japanese investment firm Mitsui & Company eventually formed a JV to develop the blue ammonia facility, which will have an output capacity of 1 million t/y.

The JV later awarded Italian contractor Tecnimont the EPC contract for the project, and construction on the facility started in June.

In June 2021, Fertiglobe signed an agreement with Taziz to become the project’s lead developer. In January 2023, Fertiglobe signed a shareholder agreement with GS Energy and Mitsui to develop the planned blue ammonia facility.

In addition to the blue ammonia and methanol projects, MEED previously reported that feed contracts had been awarded for Project Salt, a planned cluster of three chemicals plants that will produce ethylene dichloride, chlor-alkali and polyvinyl chloride.

In December 2021, Taziz secured agreements from eight UAE-based entities for investments in its planned chemicals projects in Ruwais. The agreements marked the first domestic public-private partnership in Abu Dhabi’s downstream oil, gas and petrochemicals sector.

Regarding infrastructure to support units in the chemicals production zone, Taziz awarded three EPC contracts totalling $2bn, in November, for infrastructure works at the industrial chemicals zone in Ruwais.

Abu Dhabi government-owned NMDC Group was awarded the EPC contract to build a chemicals port. Once complete, the port will facilitate the export of chemicals and fuels.

Singapore-based Rotary Engineering won the EPC contract for a chemicals terminal, known as Project Landing. The contract includes developing storage facilities, tank-to-jetty pipelines, jetty-to-tank pipelines, inter-site pipelines and liquid product storage. Taziz is building the chemicals handling terminal in partnership with Netherlands-based midstream energy company Advario.

Abu Dhabi-based Al-Geemi Contracting was awarded the EPC contract to develop essential infrastructure for the 17-square-kilometre Taziz chemicals production site, including internal roads, security fencing and buildings.

Taziz also said it was close to awarding the EPC contract to develop a centralised utilities facility for the chemical zone, including power transmission, steam, cooling water and water units. Adnoc has signed an agreement with Abu Dhabi National Energy Company (Taqa) to develop the cogeneration power facility in Ruwais.

ALSO READ: Local firms invest in Taziz industrial complex

Taziz has planned seven petrochemicals derivatives projects as part of the first phase of its industrial chemicals zone.

UK-headquartered Wood Group has performed the feed works on the seven projects, which are:

Anchor product

End use

Chlor-alkali

Water treatment, metallurgy and textiles

Ethylene dichloride

Housing, infrastructure and consumer goods

Maleic anhydride

Piping, construction and heavy transport

Methanol

Energy, consumer goods and pharmaceuticals

Blue ammonia

Agriculture, apparel and energy

Isopropyl alcohol

Healthcare and cosmetics

Elastomers

Automobiles, adhesives, food production and storage

Chemicals production is a priority sector for Operation 300bn, the UAE’s industrial growth strategy.

The industrial strategy is being overseen by the Industry & Advanced Technology Ministry, which aims to raise the UAE industrial sector’s contribution to the national GDP to AED300bn ($81.7bn) by 2031.

ALSO READ: Fertiglobe begins next growth chapter in Abu Dhabi
https://image.digitalinsightresearch.in/uploads/NewsArticle/13356606/main4151.jpg
Indrajit Sen

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Algeria opens bidding for water treatment plant

    15 April 2026

     

    State-owned Cosider Pipelines, part of Algeria’s public infrastructure group Cosider, has issued a tender for the construction of a demineralisation plant in In Salah in Algeria.

    The contract covers the design, supply, installation, testing and commissioning of a plant with a treatment capacity of 62,000 cubic metres a day (cm/d).

    The tender is open to local and international companies specialising in the design and construction of demineralisation and reverse osmosis desalination plants.

    The bid submission deadline is 26 April.

    The project will be located at In Salah, a key industrial area in southern Algeria, where treated water supply is important for both municipal and industrial use.

    Cosider said that individual bidders must demonstrate that they have completed at least one reverse osmosis demineralisation or desalination plant with a capacity of 20,000 cubic metres a day or more.

    They must also show an average annual turnover of at least AD1bn ($7.7m) for their five best years over the past decade.

    For consortium bids, all partners must share full responsibility for the contract, while the lead company must meet the technical and financial requirements.

    Recent projects

    In 2023, MEED reported that Riyadh-based water utility developer Wetico had won two contracts to develop water desalination plants in Algeria.

    Societe Algerienne de Realisation de Projects Industriels (Sarpi) awarded the contract for the El-Tarf desalination plant, while Entreprise Nationale de Canalisations (Enac) is the client for the Bejaja facility.

    Both plants were commissioned in 2025, each with a production capacity of 300,000 cm/d.

    Separately, Wetico was the main contractor on a third plant commissioned last year. The Cap Dijinet 2 seawater desalination plant in Boumerdes province covers 18 hectares and also has a capacity of 300,000 cm/d.

    Like many countries, Algeria is facing pressure on resources due to longer and more frequent droughts. Seawater desalination is seen as a key driver of the government’s strategy to guarantee drinking water supply.

    According to previous reports, the government is planning to build up to six additional plants by 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16404325/main.jpg
    Mark Dowdall
  • WEBINAR: UAE Projects Market 2026

    15 April 2026

    Webinar: UAE Projects Market 2026
    Tuesday, 28 April 2026 | 11:00 GST  |  Register now

    Agenda:

    • Overview of the UAE projects market landscape
    • 2025 projects market performance
    • Value of work awarded 2026 YTD
    • Impact of the Iran conflict on the projects market and real estate, assessing supply chain disruptions, material cost inflation and war risk premiums
    • Key drivers, challenges and opportunities
    • Size of future pipeline by sector and status
    • Ranking of the top contractors and clients
    • Summary of key current and future projects
    • Short and long-term market outlook
    • Audience Q&A

    Hosted by: Colin Foreman, editor of MEED 

    Colin Foreman is editor and a specialist construction journalist for news and analysis on MEED.com and the MEED Business Review magazine. He has been reporting on the region since 2003, specialising in the construction sector and its impact on the broader economy. He has reported exclusively on a wide range of projects across the region including Dubai Metro, the Burj Khalifa, Jeddah Airport, Doha Metro, Hamad International airport and Yas Island. Before joining MEED, Colin reported on the construction sector in Hong Kong.

    Click here to register

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16401868/main.gif
    Colin Foreman
  • Saudi Landbridge finds its moment in Gulf turmoil

    15 April 2026

    Commentary
    Yasir Iqbal
    Construction writer

    The strategic case for the Saudi Landbridge has never been more urgent. SAR’s appointment of Spain’s Typsa as lead design consultant, reported by MEED this week, is more than a procurement milestone. After two decades of delays, it reflects how the long-deferred project has become a strategic necessity.

    The conflict reshaping the Middle East has made that necessity more immediate. Red Sea transits are costly and unpredictable. The Strait of Hormuz carries risk no insurer can fully price. Saudi Arabia’s most valuable exports, including crude oil, refined products, petrochemicals and industrial goods, move almost entirely by sea through routes that are no longer reliably secure.

    The kingdom sits between two coastlines with no rail link connecting them. That gap is now an economic exposure.

    The $27bn project addresses it directly. More than 1,500 kilometres of track, anchored by a 900km railway between Riyadh and Jeddah, will provide direct freight access from King Abdullah Port on the Red Sea, with upgrades to the Riyadh-Dammam line and a new connection to Yanbu.

    Together, they create what Saudi Arabia has never had: a continuous land corridor linking Gulf industrial ports to Red Sea export terminals, entirely within its own borders.

    The commercial implications are substantial. Aramco’s downstream output, Sabic’s chemicals, and the manufacturing clusters of Jubail and Yanbu gain flexible access to both coasts.

    Exporters targeting Europe and the Americas load at Jeddah; those serving Asia pivot east to Dammam by rail, on demand, without Hormuz risk or Red Sea freight surcharges.

    No neighbouring economy has that optionality. The network also underpins a broader economic ambition. Connecting Jeddah, Riyadh, Dammam, Jubail, Yanbu, King Abdullah port and King Khalid airport by rail positions the kingdom as a genuine logistics corridor between East and West. 

    With design now under way and construction tenders expected imminently, the Landbridge is closer to reality than at any point in its troubled history. Regional disruption did not create this project. But it has made the argument for it unanswerable.

    MEED’s April 2026 report on Saudi Arabia includes:

    > COMMENT: Risk accelerates Saudi spending shift
    > GVT &: ECONOMY: Riyadh navigates a changed landscape
    > BANKING: Testing times for Saudi banks
    > UPSTREAM: Offshore oil and gas projects to dominate Aramco capex in 2026
    > DOWNSTREAM: Saudi downstream projects market enters lean period
    > POWER: Wind power gathers pace in Saudi Arabia
    > WATER: Sharakat plan signals next phase of Saudi water expansion
    > CONSTRUCTION: Saudi construction enters a period of strategic readjustment
    > TRANSPORT: Rail expansion powers Saudi Arabia’s infrastructure push

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16401567/main.png
    Yasir Iqbal
  • Indian firm selected for Saudi sewage treatment project

    15 April 2026

     

    Saudi Arabia’s National Water Company is understood to have recently selected Indian contractor VA Tech Wabag as its preferred bidder for a contract to expand a sewage treatment plant (STP) in Al-Majmaah in Riyadh Province.

    The engineering, procurement and construction (EPC) package for the Al-Majmaah STP has an estimated value of $65m.

    The scope includes the construction of sewage treatment plant units, a pumping station and an effluent surplus line. It also covers the installation of a Scada system, supervisory control systems and associated facilities.

    As MEED understands, six bids were submitted last year, including from local firms Alkhorayef Water & Power Technologies, Al-Rafia Contracting, Civil Works Company, Saudi Sdn Water & Energy and Washnah Trading & Contracting.

    The project forms part of Saudi Arabia’s broader push to expand treatment and reuse infrastructure under Vision 2030, particularly across the Riyadh region.

    MEED recently revealed that NWC had awarded an EPC contract for the latest phase of its long-term operations and maintenance sewage treatment programme.

    The contract to build and upgrade sewage treatment plants with a combined capacity of about 440,000 cubic metres a day was awarded to a consortium led by China’s Jiangsu United Water Technology.

    Elsewhere, a joint venture of Kuwait-based Heavy Engineering Industries & Shipbuilding and Wabag is awaiting the formal contract award for phase two of Kuwait’s Doha seawater desalination plant project.

    The firms submitted the lowest bid of $373.2m for the project last year.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16401155/main.jpg
    Mark Dowdall
  • SAR extends phosphate rail track deadline

    15 April 2026

     

    Saudi Arabian Railways (SAR) has extended the bid submission deadline to 26 April for a multibillion-riyal tender to double the tracks on the existing phosphate transport railway network connecting the Waad Al-Shamal mines to Ras Al-Khair in the kingdom’s Eastern Province.

    The new tender – covering the second section of the track-doubling works and spanning more than 150 kilometres (km) – was issued on 9 February. The previous bid submission deadline was 15 April.

    The new tender follows SAR receiving bids from contractors on 1 February for the project’s first phase, which spans about 100km from the AZ1/Nariyah Yard to Ras Al-Khair.

    The scope includes track doubling, alignment modifications, new utility bridges, culvert widening and hydrological structures, as well as the conversion of the AZ1 siding into a mainline track. It also includes support for signalling and telecommunications systems.

    The tender notice was issued in late November, with a bid submission deadline of 20 January 2026.

    Switzerland-based engineering firm ARX is the project consultant.

    MEED understands that these two packages are the first of four that SAR is expected to tender for the phosphate railway line. Other packages expected to be tendered shortly include the depot and systems packages.

    In 2023, MEED reported that SAR was planning two projects to increase its freight capacity, including an estimated SR4.2bn ($1.1bn) project to install a second track along the North Train Freight Line and construct three new freight yards.

    Formerly known as the North-South Railway, the North Train is a 1,550km-long freight line running from the phosphate and bauxite mines in the far north of the kingdom to the Al-Baithah junction. There, it diverges into a line southward to Riyadh and a second line running east to downstream fertiliser production and alumina refining facilities at Ras Al-Khair on the Gulf coast.

    Adding a second track and the freight yards will significantly increase the network’s cargo-carrying capacity and facilitate increased industrial production. Project implementation is expected to take four years.

    State-owned SAR is also considering increasing the localisation of railway materials and equipment, including the construction of a cement sleeper manufacturing facility.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16400986/main.jpg
    Yasir Iqbal