TA’ZIZ and Reliance Sign 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.
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 during a visit by Mr. Mukesh Ambani, Chairman and Managing Director of Reliance, to ADNOC headquarters.
During the visit, Mr. Ambani met with His Excellency Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, and discussed opportunities for partnership and growth in Upstream, new energies and decarbonization from across the hydrocarbon value chain.
H.E. Dr. Al Jaber and Mr. 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.
Mr. 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.
H.E. Dr. Al Jaber said: “Reliance is a valued strategic partner and our collaboration at TA’ZIZ underscores the important role of industrial and energy cooperation as a means of strengthening the deep-rooted and friendly ties between the UAE and India."
The TA’ZIZ EDC & PVC project is making solid progress towards the detailed design phase in advance of the Final Investment Decision (FID) which is expected to be taken later this year.
The TA’ZIZ EDC & PVC project is well positioned to strengthen domestic supply chains and support the UAE’s national strategy to empower the industrial sector and become the driving force of a dynamic and robust domestic economy over the next 50 years.
It is anticipated that the TA’ZIZ complex will benefit from the free trade agreement between India and the United Arab Emirates, which was signed in February of this year.
Bilaterial trade between both nations will be boosted as new trade and development opportunities, such as TA’ZIZ, are further unlocked.
Mr. Ambani also met with Mohamed Jameel Al Ramahi, CEO of Masdar, to explore potential opportunities for collaboration in renewable energy and green hydrogen, both of which are key priorities for the UAE and India.
In early 2022, Reliance announced plans to invest upwards of $75 billion in renewables infrastructure, much of which is expected to support the development of green hydrogen production facilities.
Chemicals is a priority sector for the UAE’s industrial growth strategy, championed by the Ministry of Industry and Advanced Technology.
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.