Adnoc said on Tuesday that Reliance Industries Limited (Reliance) has signed an agreement to enter a new world-scale Chlor-alkali, ethylene dichloride, and polyvinyl chloride (PVC) production plant at TA'ZIZ in Ruwais, Abu Dhabi.

The deal capitalizes on rising demand for these essential industrial raw materials and leverages ADNOC and Reliance's capabilities as worldwide industrial and energy experts. The project will be developed in the TA'ZIZ Industrial Chemicals Zone, a joint venture among Adnoc and ADQ, and will be Reliance's first investment in the area.

The deal maintains the pace of Adnoc's downstream and industry expansion goals, which are following the company's 2030 vision. Petrochemical, refining, and gas expansion projects are now under development, while several projects in the downstream and industry portfolio have just been completed. Adnoc is preparing for expansion with TA'ZIZ, the world-scale chemicals manufacturing center and industrial ecosystem located in Ruwais, including an investment of more than Dhs 18 billion and a variety of downstream and industrial development projects. Adnoc has received a substantial amount of foreign direct investment from multinational partners in the downstream industry, which involves refining, fertilizers, and gas pipelines, since 2018.

According to the deal, TA'ZIZ and Reliance would build an integrated factory capable of producing 940 thousand tonnes of Chlor-alkali, 1.1 million tonnes of ethylene dichloride, and 360 thousand tonnes of PVC each year.

“We are thrilled to recruit an investor of Reliance's quality to join with Adnoc and ADQ in accelerating economic growth at TA'ZIZ,” said Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, and Adnoc Group Managing Director and CEO. This deal marks an important step forward in our efforts to build an internationally competitive industrial environment and a highly appealing investor value proposition. Following our 2030 vision, we look forward to expanding possibilities for the next generation of local industry throughout the TA'ZIZ ecosystem. Domestic production of essential industrial raw materials improves our supply chains, increases In-Country Value, and speeds up the UAE's economic diversification.”

Mukesh D. Ambani, Chairman and Managing Director of Reliance Industries, applauded this effort, saying, "We at Reliance are thrilled to engage in a strategic collaboration with Adnoc to create world-class and world-scale chemicals project at TA'ZIZ in Ruwais." This significant milestone strengthens our long-lasting partnership with Adnoc, reinforcing our trust in the UAE's smart leadership's global vision. This also serves as another evidence of the huge potential for developing India-UAE collaboration in value improvement in the energy and petrochemicals domains. The project has developed ethylene dichloride, a critical building ingredient in the manufacturing of PVC in India. This is indeed a big step in globalizing Reliance's activities, and we are pleased to collaborate with Adnoc on such an important project for the area.”

Chlor-alkali is utilized in the treatment of water and the production of textiles and metals. PVC is generally made from ethylene dichloride. PVC is used in a variety of applications, including housing, infrastructure, and consumer products. The market for such chemicals is anticipated to develop steadily, fueled by rising demand, notably in Asia and Africa.

The production of these chemicals would allow local industry to acquire essential raw materials in the UAE for the first time, opening up new potential for In-County Value. Chlor-alkali, for example, would facilitate the manufacturing of caustic soda, which is required for the production of aluminum. PVC and ethylene dichloride have a variety of purposes in housing, infrastructure, and consumer products.

TA'ZIZ has made considerable progress since its introduction in November 2020. Land and maritime studies have been already performed as part of the site's development. Local and international investors have expressed strong interest in prospects through the whole ecosystem and value chain, and contracts with the first round of investors are approaching finalization.

Contracts for the initial stages of development of the TA'ZIZ site had been awarded, and construction has already begun. This comprises completed geotechnical and topographical studies, a maritime bathymetric analysis, and health, safety, and environmental impact evaluations. The studies would allow civil engineering work to begin on the TA'ZIZ site, and dredging for a new port complex.