UAE's major oil giant Abu Dhabi National Oil Company (ADNOC) in collaboration with India's Reliance Industries Limited (Reliance) has signed a joint agreement to develop a massive project in the petrochemical sector in Abu Dhabi.
The $2billion project will produce chlor-alkali, ethylene dichloride, and polyvinyl chloride (PVC) at TA'ZIZ Industrial Chemical Zone, a joint venture of ADNOC and state-run enterprise ADQ, in Ruwais, according to a statement released by ADNOC on Tuesday. These chemicals are used as raw materials in manufacturing textiles, metals, housing, infrastructure and consumer goods and are in demand, especially in Asia and Africa.
"Under the terms of the agreement, TA'ZIZ and Reliance will construct an integrated plant, with capacity to produce 940 thousand tons of chlor-alkali, 1.1 million tons of ethylene dichloride and 360 thousand tons of PVC annually," the statement said.
Through Ta'ZiZ, ADNOC is expecting a steered growth with a surplus of $4.9 billion investment and several further growth projects in the industry sector.
Indian multinational conglomerate Reliance's chairman and managing director, Mukesh D Ambani, pointed out that the project is a significant step in globalising Reliance's operations. "The project will manufacture ethylene dichloride, a key building block for production of PVC in India."
Earlier, ADNOC and Saudi Aramco, a Saudi Arabian Oil Company, had signed several large investment pacts in India's petrochemical sector.