Reliance signs shareholder agreement for Ruwais Chemicals Project
Abu Dhabi Chemicals Derivatives Company RSC Ltd (TA’ZIZ) and Reliance Industries Limited (RIL), have signed the formal Shareholder Agreement for the TA’ZIZ EDC & PVC project. Reliance is India’s largest diversified conglomerate and a strategic partner with Abu Dhabi National Oil Company (ADNOC) and ADQ, an Abu Dhabi-based investment and holding company, in TA’ZIZ EDC & PVC, a world-scale chemicals development at the TA’ZIZ Industrial Chemicals Zone in Ruwais.
The TA’ZIZ EDC & PVC joint venture will construct and operate a Chlor-Alkali, Ethylene Dichloride (EDC) and Polyvinyl Chloride (PVC) production facility, with a total investment of over $2 billion (AED 7.34 billion). These chemicals will be produced in the UAE for the first time, unlocking new revenue streams and opportunities for local manufacturers to Make it in the Emirates.
The formal shareholder agreement was signed by senior executives during a visit of Mukesh Ambani, Chairman and Managing Director of Reliance, to ADNOC headquarters. During the visit, Ambani met with Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC, and discussed opportunities for partnership and growth in Upstream, new energies and decarbonization across the hydrocarbon value chain.
Dr. Al Jaber and Ambani exchanged a signed framework agreement between ADNOC and Reliance to explore collaboration in the exploration, development and production of conventional and unconventional resources in Abu Dhabi as well as in decarbonization of operations, including in carbon dioxide (CO2) sequestration. Ambani was also briefed on the 28th session of the Conference of the Parties (COP28) which is set to be held in the UAE in 2023.
TA’ZIZ EDC & PVC is moving forward in the detailed design phase in advance of the Final Investment Decision (FID) later this year. TA’ZIZ EDC & PVC project will strengthen the UAE’s domestic supply chains and support the UAE’s national strategy to bolster the industrial sector and propel a dynamic and robust economy over the next 50 years. TA’ZIZ complex is expected to benefit from the free trade agreement between India and the UAE, signed in February. TA’ZIZ will further open up trade and development opportunities between both nations.
Mohammed Jameel Al Ramahi, CEO of Masdar, met with Ambani to discuss collaborations in renewable energy and green hydrogen, both of which are key initiatives for UAE and India. As described in the Hydrogen Leadership Roadmap, Ambani was briefed on the UAE’s ambitious plans to strengthen its clean hydrogen production capability and expand its renewable energy portfolio. It was announced in December 2021 that the UAE would establish a global clean energy powerhouse under the Masdar brand, joining the efforts of ADNOC, TAQA, Mubadala on green hydrogen and renewable energy.
The chemicals set to be produced by the TA’ZIZ EDC & PVC joint venture with Reliance have a wide range of industrial applications, enabling local supply chains and meeting growing demand in key export markets. Chlor-Alkali enables the production of caustic soda, crucial to the alumina refining process. EDC is used in the production of PVC, which is used to manufacture a wide range of industrial and consumer products including pipes, windows fittings, cables, films and flooring.
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, strengthening In-Country Value. Final Investment Decision for the chemical project is expected later this year and is subject to relevant regulatory approvals.