TA’ZIZ and Reliance Industries Signed Shareholder Agreement for Ruwais Chemicals Project

Abu Dhabi Chemicals Derivatives Company RSC Ltd  (TA’ZIZ) and Reliance Industries Limited (RIL), have signed the formal Shareholder Agreement for the  TA’ZIZ EDC & PVC project. Reliance is India’s largest diversified conglomerate and a strategic partner  with Abu Dhabi National Oil Company (ADNOC) and ADQ, an Abu Dhabi-based investment and  holding company, in TA’ZIZ EDC & PVC, a world-scale chemicals development at the TA’ZIZ Industrial  Chemicals Zone in Ruwais.  

The TA’ZIZ EDC & PVC joint venture will construct and operate a Chlor-Alkali, Ethylene Dichloride  (EDC) and Polyvinyl Chloride (PVC) production facility, with a total investment of over $2 billion (AED  7.34 billion). These chemicals will be produced in the UAE for the first time, unlocking new revenue  streams and opportunities for local manufacturers to “Make it in the Emirates.” 

The formal shareholder agreement was signed by senior executives during a visit of Mr. Mukesh  Ambani, Chairman and Managing Director of Reliance, to ADNOC headquarters. During the visit, Mr.  Ambani met with His Excellency Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology  and ADNOC Managing Director and Group CEO, and discussed opportunities for partnership and  growth in Upstream, new energies and decarbonization across the hydrocarbon value chain. 

Shareholder agreement for the $2 billion+ TA’ZIZ EDC & PVC joint venture signed  as the project progresses towards detailed design phase ahead of expected  Final Investment Decision later this year  

TA’ZIZ EDC & PVC will produce Chlor-Alkali, Ethylene Dichloride and Polyvinyl Chloride for  the first time in the UAE, unlocking new revenue streams and opportunities  for local manufacturers to “Make it in the Emirates” 

ADNOC and Reliance sign new strategic agreement on  

Upstream collaboration and decarbonization of operations 

Masdar and Reliance discuss collaboration in new energies as UAE and India  seek to grow their leadership positions in renewable energy and green hydrogen 

H.E. Dr. Al Jaber and Mr. Mukesh Ambani exchanged a signed framework agreement between  ADNOC and Reliance to explore collaboration in the exploration, development and production of  conventional and unconventional resources in Abu Dhabi as well as in decarbonization of operations,  including in carbon dioxide (CO2) sequestration. Mr. Mukesh Ambani was also briefed on the 28th  session of the Conference of the Parties (COP28) which is being held in the UAE in 2023. 

H.E. Dr. Al Jaber, said: “Reliance is a valued strategic partner and our collaboration at TA’ZIZ  underscores the important role of industrial and energy cooperation as a means of strengthening the  deep-rooted and friendly ties between the UAE and India. We are building on this partnership and the  progress at TA’ZIZ to unlock more opportunities to drive the UAE’s industrial and manufacturing growth,  while advancing cooperation on decarbonization, new energies and upstream production.”  

The TA’ZIZ EDC & PVC project is making solid progress towards the detailed design phase in advance  of the Final Investment Decision (FID) which is expected to be taken later this year.  

Mr. Mukesh Ambani, said: “I am happy to see the quick progress made by The TA’ZIZ EDC and PVC  joint venture between Reliance Industries Limited and TA’ZIZ in a short time. This joint venture is a  testimony to the strong and growing ties between India and the UAE and will be a benchmark for more  such projects built on strengths of the two nations. I am looking forward to implementation of the project  at an accelerated pace, taking a step further in enhancing lives of our people in the region.” 

The TA’ZIZ EDC & PVC project is well positioned to strengthen domestic supply chains and support  the UAE’s national strategy to empower the industrial sector and become the driving force of a dynamic  and robust domestic economy over the next 50 years. It is anticipated that the TA’ZIZ complex will  benefit from the free trade agreement between India and the United Arab Emirates, which was signed  in February of this year. Bilaterial trade between both nations will be boosted as new trade and  development opportunities, such as TA’ZIZ, are further unlocked.  

Mr. Mukesh Ambani also met with Mohamed Jameel Al Ramahi, CEO of Masdar, to explore potential  opportunities for collaboration in renewable energy and green hydrogen, both of which are key priorities  for the UAE and India. Mr. Mukesh Ambani was briefed on the UAE’s ambitious plans to grow its world leading renewable energy portfolio and strengthen its clean hydrogen production capabilities, as  described in the country’s “Hydrogen Leadership Roadmap.” In December 2021, it was announced  that the UAE will create a global clean energy powerhouse, under the Masdar brand, consilidating the  efforts of ADNOC, TAQA and Mubadala in renewable energy and green hydrogen to create a new  world-class entity.

During his visit in Abu Dhabi, Mr. Mukesh Ambani was briefed on strong progress made at the TA’ZIZ  Industrial Chemicals Zone. The development of TA’ZIZ continues at pace, supporting the UAE’s  national strategy to empower its industrial sector, driving growth and diversification of the country’s  economy for many years to come. 

Chemicals is a priority sector for the UAE’s industrial growth strategy, championed by the Ministry of  Industry and Advanced Technology. The chemicals set to be produced by the TA’ZIZ EDC & PVC joint  venture with Reliance have a wide range of industrial applications, enabling local supply chains and  meeting growing demand in key export markets. Chlor-Alkali enables the production of caustic soda,  crucial to the alumina refining process. EDC is used in the production of PVC, which is used to  manufacture a wide range of industrial and consumer products including pipes, windows fittings,  cables, films and flooring. 

The production of Chlor-Alkali, EDC, and PVC will create opportunities for export to target markets in  Southeast Asia and Africa, as well as providing local industry with a source of critical raw materials  manufactured in the UAE for the first time, strengthening In-Country Value. Final Investment Decision  for the chemical project is expected later this year and is subject to relevant regulatory approvals.