Dubai: Abu Dhabi National Oil Company (ADNOC) and India’s Reliance Industries (Reliance) have signed an agreement to build a chemicals plant in Ruwais.
TA’ZIZ – a joint venture between ADNOC and ADQ – and Reliance will construct an integrated plant, with the capacity to produce 940,000 tons of chlor-alkali, 1.1 million tons of ethylene dichloride and 360,000 tons of PVC (polyvinyl chloride) annually.
Chlor-alkali is used in water treatment and in the manufacture of textiles and metals. Ethylene dichloride is typically used to produce PVC, which has a wide range of applications across housing, infrastructure and consumer goods.
The market for these chemicals is expected to have steady growth, particularly in Asia and Africa.
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,” said Reliance in a statement.
The project, in the TA’ZIZ Industrial Chemicals Zone, is in line with ADNOC’s downstream and industry growth plans.
“This agreement is a significant milestone, as we continue to grow a globally competitive industrial ecosystem and highly attractive investor value proposition,” said Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO.
TA’ZIZ has attracted investments in excess of Dh18 billion and a number of further projects in the downstream and industry sector.
“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,” said Mukesh Ambani, Reliance Industries Chairman and Managing Director.
Fast progress at TA’ZIZ
ADNOC said it has received considerable interest from local and international investors to invest across the entire ecosystem and value chain, adding that agreements with the first phase of investors were nearing finalization.
“Contracts have been awarded for the first stages of development of the TA’ZIZ site, and work is already underway,” said ADNOC.
Final investment decisions for the projects and awards of related EPC (engineering, procurement and construction contract) contracts are being targeted for 2022.