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Adnoc, Reliance sign partnership for world-scale chemical projects

Dubai - Tenders for the initial design of the seven Ta’ziz chemicals derivatives projects have been awarded and work is ongoing

Abu Dhabi National Oil Co (Adnoc) and India’s Reliance Industries have announced that they will develop a new world-scale chlor-alkali, ethylene dichloride and polyvinyl chloride (PVC) production facility at Ta’ziz in Ruwais.

The agreement capitalises on growing demand for critical industrial raw materials, and continues the momentum of Adnoc’s downstream and industry growth plans that are in line with Adnoc’s 2030 strategy.

Petrochemical, refining and gas growth projects are currently under construction, with a number of projects also recently completed across the downstream and industry portfolio. Adnoc is gearing up for growth with Ta’ziz, the world-scale chemicals production hub and industrial ecosystem based in Ruwais, with investment in excess of Dh18 billion and a number of further growth projects in the downstream and industry sector.

Under the terms of the agreement, Ta’ziz and Reliance will construct an integrated plant, with a capacity to produce 940,000 tonnes of chlor-alkali, 1.1 million tonnes of ethylene dichloride and 360,000 tonnes of PVC annually.

Dr. Sultan bin Ahmad Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Adnoc Managing Director and Group CEO, said: “We are delighted to attract an investor of Reliance’s caliber to partner with Adnoc and ADQ in accelerating growth at Ta’ziz. This agreement is a significant milestone, as we continue to grow a globally competitive industrial ecosystem and highly attractive investor value proposition.”

“In line with our 2030 strategy, we look forward to creating further opportunities across the entire Ta’ziz ecosystem for the next generation of local industry. The domestic production of critical industrial raw materials strengthens our supply chains, drives In-Country Value and accelerates the UAE’s economic diversification,” he said.

Reliance Industries chairman and MD Mukesh D. Ambani said: “We at Reliance are excited to enter into a partnership with Adnoc for establishing a world-class and world-scale chemical project at Ta’ziz in Ruwais. 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. The project will manufacture ethylene dichloride, a key building block for production of PVC in India. This is a significant step in globalizing Reliance’s operations, and we are proud to partner with Adnoc in this important project for the region.”

Chlor-alkali is used in water treatment and in the manufacture of textiles and metals. Ethylene dichloride is typically used to produce PVC. PVC has a wide range of applications across housing, infrastructure and consumer goods. The market for these chemicals is expected to enjoy steady growth supported by the needs of growing demand, particularly in Asia and Africa.

Production of these chemicals will create opportunities for the local industry to source critical raw materials in the UAE for the first time, creating additional opportunities for in-county value. For example, chlor-alkali will enable production of caustic soda, essential for the production of aluminum. Ethylene dichloride and PVC have a wide range of applications across housing, infrastructure and consumer goods.

Since its launch in November 2020, Ta’ziz has made significant progress. Development activities at the site have moved forward, with land and marine surveys already completed. Considerable interest has been received from local and international investors in opportunities across the entire ecosystem and value chain, and agreements with the first phase of investors are nearing finalization.

Contracts have been awarded for the first stages of development of the Ta’ziz site, and work is already underway. This includes geotechnical and topographical surveys, a marine bathymetric survey and health, safety, and environment impact assessments, which have already been completed. The surveys will enable civil engineering works to commence, preparing the Ta’ziz site for construction as well as dredging for an entirely new port facility. Tenders for the initial design of the seven Ta’ziz chemicals derivatives projects have been awarded and work is ongoing. Final investment decisions for the projects and awards of related EPC contracts are being targeted for 2022.

waheedabbas@khaleejtimes.com