ADNOC and Reliance sign agreement for chemical project in Abu Dhabi

The Abu Dhabi National Oil Company (ADNOC) said on Tuesday that it has signed an agreement with India’s Reliance Industries Limited (Reliance) for the latter to join a new chlor-alkali, ethylene dichloride and polyvinyl chloride (PVC) production facility at TA’ZIZ in Ruwais, Abu Dhabi.

Under the agreement, TA’ZIZ and Reliance will construct an integrated plant, with a capacity to produce 940 thousand tons of chlor-alkali, 1.1 million tons of ethylene dichloride and 360 thousand tons of PVC annually.

The project will be constructed in the TA’ZIZ Industrial Chemicals Zone, which is a joint venture between ADNOC and ADQ, and represents the first investment by Reliance in the region.

“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. The domestic production of critical industrial raw materials strengthens our supply chains, drives In-Country Value and accelerates the UAE’s economic diversification,” said Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC group managing director and CEO.

Mukesh D. Ambani, Reliance Industries chairman and managing director, added: “The project will manufacture ethylene dichloride, a key building block for production of PVC in India. This is a significant step in globalising 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.

ADNOC is gearing up for growth with TA’ZIZ, with investment in excess of Dhs18bn and a number of further growth projects in the downstream and industry sector, according to state news agency WAM. 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.

Recently, 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