The Abu Dhabi National Oil Company (ADNOC) announced today, Tuesday, the signing of an agreement with the Indian company “Reliance Industries” to establish a new global plant for the production of chlor-alkali, ethylene chloride and polyvinyl chloride within the “Tazez” industrial system in Ruwais, Abu Dhabi, the joint venture between ADNOC and ADQ Holdings.
This agreement represents Reliance’s first investment in the region and contributes to strengthening relations between the UAE and India.
The agreement benefits from the growing demand for these vital industrial raw materials, and from the position of ADNOC and “Reliance” as global leaders in the field of industry and energy.
Under the agreement, Tazeez and Reliance will build an integrated plant with a production capacity of 940,000 tons of chlor-alkali, 1.1 million tons of ethylene dichloride and 360,000 tons of polyvinyl chloride annually.
competitive industrial system
Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, Managing Director and CEO of ADNOC and its group of companies, said: “In line with the leadership’s vision to enhance industrial and economic growth in the country, this agreement constitutes an important step in our endeavors to build a global competitive industrial system in “Tazam”, and provide attractive opportunities It contributes to supporting the local industrial sector and consolidating the UAE’s position as a global competitive center for the production of chemicals and a leading investment destination.”
He added, “We are pleased to attract an investor of the size and stature of Reliance to cooperate with us and the Holding Company in accelerating the pace of progress in “Tazez”. Our partnership with Reliance confirms the attractiveness of “Tazez” to international and local investors. It will pave the way for launching a new phase in the growth of the industrial sector in the country through the local production of vital industrial raw materials that contribute to achieving local self-sufficiency, enhancing local added value and accelerating the process of economic diversification.”
The agreement embodies ADNOC’s continued implementation of its plans to expand in the refining, petrochemicals and industry sector in line with its smart growth strategy 2030, as the company owns several projects in the petrochemical, refining and gas fields currently under construction, in addition to completing a number of petrochemical, refining and manufacturing projects.
ADNOC is also preparing for the next phase of growth with “Tazez”, the global industrial system for the production of chemicals in Ruwais, through investments of more than 18 billion dirhams, and a number of other projects in the petrochemical and manufacturing sector, and since 2018, ADNOC has been able to attract foreign investments. Large direct and international partners in its refining and petrochemical operations, including refining, fertilizers and gas pipelines.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said: “We are pleased to sign this strategic partnership with ADNOC to establish a world-class petrochemical project in Tazeez in Ruwais.”
He added, “This important agreement enhances our long-term relationship with ADNOC and reflects our belief in the wise vision of the leadership in the UAE and the great potential of cooperation between the two countries in energy and petrochemical projects. This facility will manufacture ethyl dichloride, which is a basic building block for the production of polyvinyl chloride in India, which helps us to expand The scope of Reliance’s international operations, and we are proud to partner with ADNOC on this important project for the region.”
Chlor-alkali is used in water treatment, textile and mineral industries.
Ethylene dichloride is typically used to produce polyvinyl chloride, which has a wide range of uses across construction, infrastructure and consumer goods projects. The market for these chemicals is expected to enjoy a steady growth supported by the needs of the increasing demand, especially in Asia and Africa.
The production of these chemicals will provide opportunities for the local industry sector to obtain vital raw materials in the UAE, which will create additional opportunities to enhance the local added value. For example, chlor-alkali will enable the production of caustic soda necessary for the production of aluminum, and ethylene dichloride and polychloride will receive Vinyl has a wide range of uses in construction, infrastructure and consumer goods projects.
“Tazez” contributes to stimulating and developing industrial activities and supply chains in the city of Ruwais, and industrial companies take advantage of its location in the “Tazez area for light industries” near the chemical industry area to obtain “Tazeez” supplies of chemicals to manufacture value-added products and put them on the market. The “Tazez Industrial Services” area is also a hub for suppliers to meet the growing needs of industrial services in the Ruwais Industrial Estate.
Since the launch of “Tazez” in November 2020, the development work has witnessed great progress, as comprehensive land and marine surveys of the site have been completed, and the investment opportunities offered by “Tazez” are attracting great interest from local and international investors in various areas of the project system and value chain. The agreements with the first batch of investors are nearing completion.
It was also announced that a package of contracts had been awarded to implement the initial stages of development work on the “Tazez” site, where preparation and preparation of the site is currently underway.
The comprehensive surveys include geotechnical and topographic surveys, deepwater surveys, and an assessment study of the impacts on health, safety and environment aspects. After the surveys are completed, civil engineering works will begin to prepare the “Tazez” site and prepare it for construction and dredging works, and dredging the area to establish a new industrial port.
ADNOC has completed awarding bids for initial engineering design contracts for the seven “Tazez” projects in the field of petrochemical derivatives, and work is under way to implement them. The final investment decision and award of engineering, procurement and construction contracts for the projects are scheduled for 2022.