UAE’s Ta’ziz, Reliance sign agreement for Ruwais chemicals project

Abu Dhabi Chemicals Derivatives Company (Ta’ziz) and Reliance Industries Limited (RIL), have signed the formal shareholder agreement for the Ta’ziz EDC & PVC project.

The Ta’ziz EDC & PVC joint venture (JV) will construct and operate a chlor-alkali, ethylene dichloride (EDC) and polyvinyl chloride (PVC) production facility, with a total investment of over $2bn. These chemicals will be produced in the UAE for the first time, unlocking revenue streams and opportunities for local manufacturers, a statement said.

Supporting the rapid diversification of the emirate’s industrial economy, Abu Dhabi Chemicals Derivatives Company (Ta’ziz), an ADNOC and ADQ joint venture, and Reliance Industries have signed a shareholder agreement for Ta’ziz EDC & PVC, an AED7.34bn chemicals project in Ruwais. pic.twitter.com/VPZDJSkPvU

— مكتب أبوظبي الإعلامي (@admediaoffice) April 27, 2022

Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology and ADNOC managing director and group CEO, and Mukesh Ambani, chairman and managing director of Reliance 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 decarbonisation of operations, including in carbon dioxide (CO2) sequestration. Reliance is a strategic partner with ADNOC and ADQ in the the Ta’ziz EDC & PVC project situated at the TA’ZIZ Industrial Chemicals Zone in Ruwais.

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. We are building on this partnership and the progress at Ta’ziz to unlock more opportunities to drive the UAE’s industrial and manufacturing growth, while advancing cooperation on decarbonization, new energies and upstream production.”

“This joint venture is a testimony to the strong and growing ties between India and the UAE and will be a benchmark for more such projects built on strengths of the two nations. I am looking forward to implementation of the project at an accelerated pace, taking a step further in enhancing lives of our people in the region,” adds Mukesh Ambani.

Chemicals to be produced by the JV have multiple 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. Meanwhile, EDC is used in the production of PVC, which is used to manufacture several industrial and consumer products including pipes, windows fittings, cables, films and flooring. The production of Chlor-Alkali, EDC, and PVC will also create opportunities for export to target markets in Southeast Asia and Africa.

The final investment decision for the chemical project is expected later this year and is subject to relevant regulatory approvals.

Last year, TA’ZIZ and Fertiglobe also signed an agreement for the latter to join the blue ammonia production project at TA’ZIZ in Ruwais, Abu Dhabi. The facility will have a capacity to produce 1 million tons per annum.

Read: Fertiglobe joins ADNOC’s blue ammonia facility in Abu Dhabi’s Ruwais