Reliance to invest $2b in Abu Dhabi

New Delhi: Billionaire Mukesh Ambani’s Reliance Industries on Tuesday said it will in partnership with Abu Dhabi Chemicals Derivatives Company RSC Ltd (TA’ZIZ) invest $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 $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 $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 longstanding 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.

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. -(PTI)