Reliance Industries and Abu Dhabi National Oil Company (ADNOC), a state-run oil company of the UAE, have finalised an agreement for a petrochemical joint venture several months after signing a broad framework agreement.
The two on Tuesday announced that through the agreement, Reliance will join a new world-scale chlor-alkali, ethylene dichloride and polyvinyl chloride (PVC) production facility at TA'ZIZ in Ruwais, Abu Dhabi.
The agreement capitalises on the growing demand for these critical industrial raw materials and leverages the strengths of ADNOC and Reliance as global industrial and energy leaders.
The project will be constructed in the TA'ZIZ Industrial Chemicals Zone, which is a joint venture between ADNOC and ADQ.
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The agreement continues the momentum of ADNOC's downstream and industry growth plans in line with ADNOC's 2030 strategy.
Petrochemical, refining and gas growth projects are currently under construction, with a number of projects also recently completed across the downstream and industry portfolio.
ADNOC is gearing up for growth with TA'ZIZ, the world-scale chemicals production hub and industrial ecosystem based in Ruwais, with investment in excess of 18 billion AED (Arab Emirates Dirham) and a number of further growth projects in the downstream and industry sector.
Under the terms of the agreement, TA'ZIZ and Reliance will construct an integrated plant, with capacity to produce 940 thousand tonnes of chlor-alkali, 1.1 million tonnes of ethylene dichloride and 360 thousand tonnes of PVC annually.
Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, and ADNOC Managing Director and Group CEO, said: "We are delighted to attract an investor of Reliance's caliber to partner with ADNOC and ADQ in accelerating growth at TA'ZIZ. This agreement is a significant milestone, as we continue to grow a globally competitive industrial ecosystem and highly attractive investor value proposition."
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Welcoming the initiative, Reliance Industries Chairman and Managing Director Mukesh Ambani said: "We at Reliance are excited to enter into a strategic partnership with ADNOC for establishing a world-class and world-scale chemical project at TA'ZIZ in Ruwais. This important milestone further bolsters our long-standing relationship with ADNOC, reaffirming our faith in the global vision of the UAE's wise leadership.
"It is also yet another testimony to the enormous potential in advancing India-UAE cooperation in value enhancement in the energy and petrochemicals sectors. The project will manufacture ethylene dichloride, a key building block for production of PVC in India. This is a significant step in globalising Reliance's operations, and we are proud to partner with ADNOC in this important project for the region."
Chlor-alkali is used in water treatment and in the manufacture of textiles and metals. Ethylene dichloride is typically used to produce PVC, which has wide range of applications across housing, infrastructure and consumer goods. The market for these chemicals is expected to enjoy steady growth supported by the needs of growing demand, particularly in Asia and Africa.