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ADNOC and Reliance sign strategic partnership for world-scale chemical projects

Under the terms of the agreement, TA’ZIZ and Reliance will construct an integrated plant, with a capacity to produce 940 thousand tonnes of chlor-alkali, 1.1 million tons of ethylene dichloride, and 360 thousand tons of PVC annually.

June 29, 2021 / 07:07 PM IST
(Image: ADNOC)

(Image: ADNOC)

The Abu Dhabi National Oil Company (ADNOC) announced on June 29 that it has entered into a strategic partnership with Reliance Industries Limited (RIL) to join a new world-scale chlor-alkali, ethylene dichloride, and polyvinyl chloride (PVC) production facility at TA’ZIZ in Ruwais, Abu Dhabi.

Under the terms of the agreement, TA’ZIZ and Reliance will construct an integrated plant, with a capacity to produce 940 thousand tonnes of chlor-alkali, 1.1 million tons of ethylene dichloride, and 360 thousand tons of PVC annually.

While chlor-alkali is used in water treatment and in textile and metal manufacturing, ethylene dichloride is typically used to produce PVC, which has a wide range of applications across housing, infrastructure, and consumer goods.

The agreement will help capitalise on the growing demand for these critical industrial raw materials and leverage the strengths of both ADNOC and RIL as global industrial and energy leaders. The new partnership will also further strengthen ties between the United Arab Emirates (UAE) and India.

Dr 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 calibre 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 the 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.”

Notably, the project will be constructed in the TA’ZIZ Industrial Chemicals Zone, which is a joint venture between ADNOC and ADQ (formerly known as Abu Dhabi Development Holding Co).

The agreement will help continue the momentum of ADNOC’s downstream and industry growth plans in line with its 2030 strategy as it gears up for growth with TA’ZIZ with an investment in excess of AED 18 billion.

Disclaimer:  Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.



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first published: Jun 29, 2021 06:34 pm
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