Reliance Industries and Abu Dhabi National Oil Company (ADNOC) signed an agreement to explore setting up of a facility in UAE to produce ethylene dichloride, which goes into making of PVC that is commonly used in pipes, tubes and cable.
“Under the terms of the agreement, ADNOC and RIL will evaluate the potential creation of a facility that manufactures ethylene dichloride or EDC adjacent to ADNOC’s integrated refining and petrochemical site in Ruwais, Abu Dhabi and strengthen the companies’ existing relationship supporting future collaboration in petrochemicals,” the companies said.
The signing of the agreement in Abu Dhabi was witnessed by UAE Minister and ADNOC Group CEO Sultan Ahmed Al Jaber and RIL Chairman and Managing Director Mukesh D Ambani.
The agreement was signed by Abdulaziz Alhajri, Executive Director of ADNOC’s Downstream Directorate, and Nikhil R Meswani, RIL Executive Director.
Ethylene dichloride (EDC) is used primarily for the production of vinyl chloride monomer (VCM), which is used mainly in the polymerization manufacture of polyvinyl chloride (PVC).
The vinyls industries include construction and infrastructure, agriculture, electrical products and healthcare.
EDC is also used as an intermediate in the manufacture of chlorinated solvents and ethyleneamines, and as a solvent in the textile, metal cleaning, and adhesive industries.
The US is the largest producer and consumer of EDC in the world, accounting for approximately 30% of global capacity, production, and consumption in 2018.
The US is also the largest EDC exporter, representing about 43% of global exports.