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RIL partners ADNOC to set up integrated chemical plant in UAE's Ruwais

RIL partners ADNOC to set up integrated chemical plant in UAE's Ruwais

The companies will set up an integrated plan to produce chlor-alkali, ethylene dichloride and polyvinyl chloride (PVC).

TA'ZIZ and Reliance will construct an integrated plant with capacity to produce 940 thousand tons of chlor-alkali. TA'ZIZ and Reliance will construct an integrated plant with capacity to produce 940 thousand tons of chlor-alkali.

Reliance Industries Ltd (RIL) on Tuesday announced a strategic partnership with UAE's Abu Dhabi National Oil Company (ADNOC) for producing chemicals at TA'ZIZ in Ruwais, Abu Dhabi.

The companies will set up an integrated plan to produce chlor-alkali, ethylene dichloride and polyvinyl chloride (PVC).

"The agreement capitalizes on growing demand for these critical industrial raw materials and leverages the strengths of ADNOC and Reliance as global industrial and energy leaders. The project will be constructed in the TA'ZIZ Industrial Chemicals Zone, which is a joint venture between ADNOC and ADQ," the companies said in a joint statement.

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.

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Chlor-alkali is used in water treatment and in manufacturing textiles and metals. Ethylene dichloride is typically used to produce PVC, which 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 local industry to source critical raw materials in the UAE for the first time, creating additional opportunities for In-County Value," the release said.

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 AED 18 billion and a number of further growth projects in the downstream and industry sector, the release said.

Since 2018, the company has attracted significant foreign direct investment from international partners in the downstream business including refining, fertilizers and gas pipelines.

Tenders for the initial design of 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.

"This important milestone further bolsters our long-standing relationship with ADNOC, reaffirming our faith in the global vision of the UAE's wise leadership...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," RIL CMD Mukesh Ambani said on the partnership.

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