Abu Dhabi Chemicals Derivatives Co., or TA’ZIZ, and India's Reliance Industries Ltd. (RIL), will launch a joint venture to construct and operate a chemicals production facility with an investment of over $2 billion.
The facility, which will produce chlor-alkali, ethylene dichloride and polyvinyl chloride, will be located at the TA’ZIZ Industrial Chemicals Zone, Ruwais, ADNOC said in a statement on Tuesday.
TA’ZIZ is a joint venture between Abu Dhabi National Oil Co., and sovereign wealth fund, ADQ.
This is the first investment in the MENA region by the Indian oil-to-telecoms conglomerate.
“India’s need for PVC to propel its growth, and the value from the abundantly available feedstock in UAE, provides a win-win partnership for both companies," said Reliance Industries Chairman and Managing Director, Mukesh Ambani.
The deal was first proposed in June this year. The Indian newspaper, the Economic Times, then reported that RIL would be investing $1.2 to $1.5 billion in the factory with ADNOC also expected to make a similar investment.
The UAE deal comes just weeks after RIL called off a deal with Saudi oil giant Aramco for a 20 percent stake acquisition by the Saudi firm in its oil-to-chemicals (O2C) business.
ADNOC and ADQ said last year they expected to attract more than $5 billion of third-party investments into petrochemical projects being executed by the TA'ZIZ joint venture.
(Reporting by Brinda Darasha; editing by Seban Scaria)
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