Reliance has made an announcement of signing the pact to invest in Abudhabi petrochemical hub
Indian Billionaire Mukesh Ambani’s Reliance Industries has signed a pact to invest a concealed amount in a giant petrochemical hub being built in the UAE.
The conglomerate will join the recently-formed Ta’ziz joint venture of Abu Dhabi state energy giant Adnoc and state holding company ADQ for developing Ruwais Derivatives Park in western Abu Dhabi.
An agreement has been signed for Reliance to invest in the project, but the company did not provide details. An unconfirmed report says the investment will be around $ 1.5 billion. Ta’ziz is in discussions with potential partners at the park to start the operations in 2025 and is hoping to attract around USD 5 billion into Ruwais.
ADNOC Abu Dhabi National Oil Co, which pumps most of the UAE’s barrels of crude oil, plans to spend USD 45 billion with its partners and develop its downstream operations in Ruwais. These projects include adding refining and petrochemical projects.
The oil refinery planned at Ruwais is being designed to be integrated with the new petrochemical project.
In a statement, “Adnoc today announced that Reliance had signed an agreement to join a new world-scale Chlor-alkali, polyvinyl chloride (PVC) and ethylene dichloride production facility at Ta’ziz in Ruwais, Abu Dhabi,”
Ta’ziz and Reliance will construct an integrated plant with a capacity to produce around 940,000 tonnes of Chlor-alkali, 1.1 million tonnes of ethylene dichloride and 360,000 tonnes of PVC yearly.
Chlor-alkali is used in water treatment, and in the manufacturing of textiles and metals, ethylene dichloride (EDC) is used to produce polyvinyl chloride (PVC). PVC is primarily used in pipes, fittings, profiles, sidings, windows, doors, tubes, wire, cable, film, flooring, and sheet.
Last week, Ambani stated that a deal to sell a 20% stake in Reliance’s oil-to-chemical business to Saudi Aramco is likely to conclude by the year-end. As a result, Aramco Chairman Yasir Al-Rumayyan will join Reliance’s board as an independent director. On Tuesday, the company said that the pact continues Adnoc’s downstream and industry growth plans in line with its 2030 strategy.