Reliance Industries (RIL) announced the signing of an agreement with Abu Dhabi National Oil Company (ADNOC) for world-scale chemical projects at TA'ZIZ in Ruwais, Abu Dhabi.
The strategic partnership is for joining a new world-scale chlor-alkali, ethylene dichloride and polyvinyl chloride (PVC) production facility.
Under the terms of the agreement, TA'ZIZ and Reliance will construct an integrated plant, with capacity to produce 940 thousand tons of chlor-alkali, 1.1 million tons of ethylene dichloride and 360 thousand tons of PVC annually.
ADNOC is a leading diversified energy and petrochemicals group wholly owned by the Emirate of Abu Dhabi. ADNOC's objective is to maximize the value of the Emirate's vast hydrocarbon reserves through responsible and sustainable exploration and production to support the United Arab Emirates' economic growth and diversification.
The agreement capitalizes on 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.
Established in Abu Dhabi in 2018, ADQ is one of the region's largest holding companies with direct and indirect investments in more than 90 companies locally and internationally.
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 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: 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 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. PVC has a 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.
Production of these chemicals will create opportunities for local industry to source critical raw materials in the UAE for the first time, creating additional opportunities for In-County Value. For example, chlor-alkali will enable production of caustic soda, essential for the production of aluminum.
Ethylene dichloride and PVC have a wide range of applications across housing, infrastructure and consumer goods.
RIL is the largest private sector corporation in India. Its activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.
On a consolidated basis, RIL reported 108.36% surge in net profit to Rs 13,227 crore on 9.59% increase in net sales to Rs 149,575 crore in Q4 March 2021 over Q4 March 2020.
The RIL scrip rose 0.44% to currently trade at Rs 2096.60 on the BSE.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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