Reliance, TA'ZIZ to invest USD 2 bn in petchem unit in Abu Dhabi

Billionaire Mukesh Ambani's Reliance Industries on Tuesday said it will in partnership with Abu Dhabi Chemicals Derivatives Company RSC Ltd (TA'ZIZ) invest USD 2 billion in setting up a petrochemical production facility in the UAE.

The oil-to-telecom conglomerate will join the recently-formed TA'ZIZ joint venture of Abu Dhabi state energy giant ADNOC and state holding company ADQ for developing the facility at Ruwais in western Abu Dhabi.

''TA'ZIZ and RIL, have agreed to launch 'TA'ZIZ EDC & PVC', a world-scale chemical production partnership at the TA'ZIZ Industrial Chemicals Zone in Ruwais,'' the company said in a statement.

The new joint venture will construct and operate a chlor-alkali, ethylene dichloride (EDC) and polyvinyl chloride (PVC) production facility, with an investment of more than USD 2 billion.

The TA'ZIZ Industrial Chemical Zone projects are currently in the design phase with project start up targeted in 2025.

''Representing the first production of these chemicals in the UAE, the project will enable the substitution of imports and the creation of new local value chains, while also meeting growing demand for these chemicals globally,'' it said.

The TA'ZIZ Industrial Chemicals Zone is a joint venture between Abu Dhabi National Oil Company (ADNOC) and ADQ.

ADNOC, which pumps most of the UAE's 3 million barrels per day of crude oil, plans to spend USD 45 billion with partners to develop its downstream operations in Ruwais. These projects include adding refining and petrochemical capacity.

The oil refinery planned at Ruwais is being designed to be integrated with the petrochemical project.

''The project builds on ADNOC and Reliance's long-standing strategic partnership and is Reliance's first investment in the MENA region,'' the statement said.

The signing of the joint venture terms, which are subject to regulatory approvals, was witnessed by UAE Minister of Industry and ADNOC chief executive Sultan Ahmed Al Jaber and Reliance Chairman and Managing Director Mukesh D Ambani.

The joint venture terms were signed by Khaleefa Al Mheiri, Acting CEO of TA'ZIZ and Kamal Nanavaty, President Strategy and Business Development of Reliance.

The agreement capitalises on the growing demand for these critical industrial raw materials and leverages the strengths of the two firms as global industrial and energy leaders.

Reliance operates the world's largest refining complex at Jamnagar in Gujarat. It also has petrochemical plants. Besides producing oil, ADNOC too has similar operations.

Under the terms of the agreement, TA'ZIZ and Reliance will construct an integrated plant with a capacity to produce 940,000 tonnes of chlor-alkali, 1.1 million tonnes of ethylene dichloride and 360,000 tonnes of PVC annually.

While chlor-alkali is used in water treatment and in the manufacturing of textiles and metals, ethylene dichloride (EDC) is used for producing polyvinyl chloride (PVC).

PVC is commonly used in pipes, fittings, profiles, tubes, windows, doors, sidings, wire, cable, film, sheet, and flooring.

Al Jaber, said: ''This strategic partnership with Reliance builds on the strong and deep-rooted bilateral ties between the UAE and India and highlights the attractive and compelling value proposition offered by TA'ZIZ as we grow a globally competitive industrial ecosystem.'' ''This joint venture marks a major milestone in ADNOC's downstream expansion and the development of the TA'ZIZ Industrial Chemicals Zone. It will help strengthen domestic supply chains, drive In-Country Value and accelerate the UAE's economic diversification, in line with the leadership's wise directives.'' Ambani said the joint venture will further cement the long standing and valued relationship between India and the UAE.

''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. Close cooperation in the region based on shared objectives is key as we optimise resources and work together to enrich the lives of our citizens,'' he said.

The production of chlor-alkali, EDC and PVC will create opportunities for export to target markets in Southeast Asia and Africa, as well as providing local industry with a source of critical raw materials manufactured in the UAE for the first time, the statement said.

TA'ZIZ comprises three zones, the first of which is an industrial chemicals zone that will host chemicals production, with seven world-scale projects already in the design phase. The second is a light industrial zone, which will be home to downstream conversion industries that will convert the outputs of the chemical zone into consumable products and, finally, an industrial services zone that will house a variety of companies providing the necessary services required by the TA'ZIZ industrial zones and the wider Ruwais Industrial Complex.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)