Under the deal, Ta’ziz – a joint venture between ADNOC and Abu Dhabi holding company ADQ – and Reliance will construct an integrated facility with capacity to produce 940,000 t/y of chlor-alkali, 1.1 million t/y of EDC and 360,000 t/y of PVC.

The companies expect the market for chlor-alkali and PVC to enjoy steady growth, supported by growing demand, particularly in Asia and Africa. Chlor-alkali is used in water treatment and in manufacturing textiles and metals, while PVC has a wide range of applications across housing, infrastructure and consumer goods.

“This important milestone further bolsters our long-standing relationship with ADNOC, reaffirming our faith in the global vision of the UAE’s wise leadership. It is also yet another testimony to the enormous potential in advancing India-UAE cooperation in value enhancement in the energy and petrochemicals sectors,” said Reliance Industries chairman and managing director, Mukesh Ambani, adding that it is also “a significant step in globalizing Reliance’s operations.”

The complex will be Reliance’s first investment in the region and comes after the Indian group and ADNOC announced in December 2019 that they planned to explore the development of an EDC facility at Ruwais, next to the Abu Dhabi oil and petrochemical group’s refinery complex. ADNOC would supply ethylene to the venture along with access to its existing infrastructure at Ruwais, while Reliance would provide its operational experience, as well as entry to the expanding Indian vinyls market.

In another major development for Reliance last month, the Indian multi-industry giant appointed Saudi Aramco chairman Yasir Al-Rumayyan as an independent director to its board. Media reports said the appointment signals that a long-proposed deal between Reliance and Aramco could be moving closer.

Reliance announced in August 2019 that it would sell a 20% stake in its oil-to-chemicals division to Aramco for $75 billion, but the deal was stymied by a collapse in the oil price and plummeting demand prompted by the coronavirus pandemic.

Author: Elaine Burridge, Freelance Journalist