Major financing for UAE methanol hub

The project is a joint venture between TA’ZIZ and Proman and is scheduled for completion in Q3 2028, with capacity to produce 1.8 million tonnes of methanol annually. 

“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,” said David Cassidy, chief executive of Proman

Fuel contender

News of the production plant venture in Al Ruwais Industrial City comes as methanol strengthens its position within the alternative marine fuel sector, with accelerated adoption across commercial shipping.

Bureau Veritas reports that methanol use is expanding beyond container shipping into tanker segments, driven by growing orders for dual-fuel methanol vessels as operators pursue scalable decarbonisation pathways and seek fuels compatible with emerging global emissions frameworks.

The financing package for the new production plant comprises a $1.8 billion five-year syndicated loan and a $200 million Islamic facility, arranged by 11 regional, European and Asian financial institutions. 

Proman has also secured a long-term offtake agreement granting its marketing arm, Valenz, exclusive rights to market the output globally once operational.

Sumitomo Mitsui Banking Corporation acted as exclusive financial advisor, while Abu Dhabi Commercial Bank and First Abu Dhabi Bank served as bookrunners and mandated lead arrangers.

The developers report that financing was significantly oversubscribed, reflecting investor confidence in Abu Dhabi’s industrial strategy and the long-term demand outlook for methanol production linked to both chemical and fuel markets.