Reliance Industries has signed a pact to partner with Abu Dhabi National Oil Company
New Delhi:
Billionaire Mukesh Ambani’s Reliance Industries Limited (RIL) has signed a formal shareholder agreement for $2 billion UAE chemical joint venture TA’ZIZ and signed a pact to partner with Abu Dhabi National Oil Company (ADNOC) in finding and producing conventional and unconventional resources.
“Abu Dhabi Chemicals Derivatives Company RSC Ltd (TA’ZIZ) and RIL have signed the formal shareholders’ agreement for the TA’ZIZ EDC and PVC project,” the company said in a statement.
TA’ZIZ is a joint venture between ADNOC and the state investment fund ADQ.
Under the terms of a strategic agreement, Reliance and TA’ZIZ will build plants with a capacity to produce 940,000 tons of chlor-alkali per year, 1.1 million tons of ethylene dichloride and 360,000 tons of polyvinyl chloride per year at the TA’ ZIZ Industrial Chemical Zone.
Chlor-alkali is used in water treatment and the production of textiles and metals, while ethylene dichloride is commonly used to produce PVC, which has a wide variety of applications in housing, infrastructure and consumer goods.
“The TA’ZIZ EDC & PVC joint venture will build and operate a chlor-alkali, ethylene dichloride (EDC) and polyvinyl chloride (PVC) manufacturing facility, with a total investment of more than $2 billion.
“These chemicals will be produced in the UAE for the first time, opening up new revenue streams and opportunities for local manufacturers to ‘Make it in the Emirates’,” the statement said.
The formal shareholders’ agreement was signed by senior executives during a visit by Ambani, Reliance’s chairman and director, to ADNOC’s headquarters.
During the visit, Ambani met Sultan Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, and discussed opportunities for partnership and growth in upstream, new energies and decarbonisation in the hydrocarbon value chain, the statement said.
“Dr. Al Jaber and Mr. Mukesh Ambani have exchanged a signed framework agreement between ADNOC and Reliance to explore cooperation in the exploration, development and production of conventional and unconventional resources in Abu Dhabi, as well as in decarbonisation operations, including in carbon dioxide (CO2) seizure,” it sounded.
Al Jaber said: “Reliance is a valued strategic partner and our collaboration at TA’ZIZ underlines the important role of industrial and energy cooperation as a means of strengthening deep-rooted and friendly ties between the UAE and India.”
The TA’ZIZ EDC and PVC project is making solid progress towards the detailed design phase prior to the final investment decision (FID) expected to be taken later this year.
Mr Ambani said: “This joint venture is a testimony to the strong and growing ties between India and the UAE and will be a benchmark for more such projects built on the strengths of the two nations. I look forward to seeing the executing the project at an accelerated pace in improving the lives of our people in the region.”
The TA’ZIZ complex is expected to benefit from the India-UAE free trade agreement signed in February this year. Bilateral trade between the two nations will be boosted as new trade and development opportunities, such as TA’ZIZ, are further unlocked.
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