Reliance Industries on Tuesday announced that it has signed a shareholder agreement with Abu Dhabi Chemicals Derivatives Company RSC Ltd (TA’ZIZ) for an investment of $2 billion for the TA’ZIZ EDC & PVC project.
The oil-to chemicals conglomerate is 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 chemicals development at the TA’ZIZ Industrial Chemicals Zone in Ruwais.
Under this agreement, TA’ZIZ EDC & PVC joint venture will construct and operate a Chlor-Alkali, Ethylene Dichloride (EDC) and Polyvinyl Chloride (PVC) production facility, RIL said in a statement. 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," it added.
"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," RIL stated.
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 also met with Sultan Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO and 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, the statement further added.
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.”
Further, Mukesh Ambani, said: “I am happy to see the quick progress made by The TA’ZIZ EDC and PVC joint venture between Reliance Industries Limited and TA’ZIZ in a short time. 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.”
According to the statement, the TA’ZIZ EDC & PVC project 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, it added.