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India's largest private sector company Reliance Industries Limited (RIL) has signed an agreement to join a new world-scale chemical projects at TA’ZIZ in Ruwais, Abu Dhabi.
The chlor-alkali, ethylene dichloride and polyvinyl chloride (PVC) production facility will be constructed in the TA’ZIZ Industrial Chemicals Zone, which is a joint venture between ADNOC and ADQ.
The new venture represents the first investment by Reliance in the region.
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 tons of ethylene dichloride and 360 thousand tons of PVC annually, according to a statement from ADNOC.
Mukesh Ambani's RIL will be investing $1.2 to $1.5 billion in a factory located next to ADNOC's refining and petrochemical site to manufacture ethylene dichloride (EDC), The Economic Times (ET) reported on Tuesday.
According to the report, ADNOC is also expected to make a similar investment.
Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, said: "This agreement is a significant milestone, as we continue to grow a globally competitive industrial ecosystem and highly attractive investor value proposition. In line with our 2030 strategy, we look forward to creating further opportunities across the entire TA’ZIZ ecosystem for the next generation of local industry."
ADNOC is gearing up for growth with TA’ZIZ, with investment in excess of AED 18 billion and a number of further growth projects in the downstream and industry sector.
Since 2018, ADNOC has attracted significant foreign direct investment from international partners in the downstream business including refining, fertilizers and gas pipelines.
Reliance Industries Chairman and Managing Director, Mukesh D. Ambani, said: “The project will manufacture ethylene dichloride, a key
building block for production of PVC in India. This is a significant step in globalizing 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. It has a wide range of applications across housing, infrastructure and consumer goods.
According to the statement from ADNOC, contracts have been awarded for the first stages of development of the TA’ZIZ site, and work is already underway. This includes geotechnical and topographical surveys, a marine bathymetric survey and health, safety, and environment impact assessments, which have already been completed.
(Writing by Seban Scaria; editing by Daniel Luiz)
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