Billionaire Mukesh Ambani's Reliance Industries Ltd has signed a formal shareholder agreement for the $2 billion TA'ZIZ chemical joint venture in the UAE and inked a pact to collaborate with ADNOC in finding and producing conventional and unconventional resources.
"Abu Dhabi Chemicals Derivatives Company RSC Ltd (TA'ZIZ) and Reliance Industries Ltd (RIL), have signed the formal shareholder agreement for the TA'ZIZ EDC and PVC project," the company said in a statement.
TA'ZIZ is joint venture between Abu Dhabi National Oil Co (ADNOC) and sovereign wealth fund ADQ.
Under the terms of a strategic agreement, Reliance and TA'ZIZ will build plants with the capacity to produce 940,000 tonnes per annum of Chlor-alkali, 1.1 million tonnes a year of ethylene dichloride, and 360,000 tonnes per year of polyvinyl chloride at the TA'ZIZ Industrial Chemicals Zone.
Chlor-alkali is used in water treatment and manufacture of textiles and metals, while ethylene dichloride is typically used to produce PVC, which has a wide range of applications across housing, infrastructure and consumer goods.
"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. 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 statement added.
The formal shareholder agreement was signed by senior executives during a visit of Ambani, chairman and managing director of Reliance, to ADNOC headquarters.
During the visit, Ambani met 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, the statement said.
"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," it said.
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," he said.
The TA’ZIZ EDC and 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.
Ambani said: "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 the strengths of the two nations. I am looking forward to the implementation of the project at an accelerated pace, taking a step further in enhancing the lives of our people in the region."
It is anticipated that the TA'ZIZ complex will benefit from the free trade agreement between India and the UAE, which was signed in February this year. Bilateral trade between both nations will be boosted as new trade and development opportunities, such as TA’ZIZ, are further unlocked.
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.
He was briefed on the UAE's ambitious plans to grow its world-leading renewable energy portfolio and strengthen its clean hydrogen production capabilities.
In December 2021, it was announced that the UAE will create a global clean energy powerhouse, under the Masdar brand, consolidating the efforts of ADNOC, TAQA and Mubadala in renewable energy and green hydrogen to create a new world-class entity.
During his visit to Abu Dhabi, Ambani was briefed on strong progress made at the TA'ZIZ Industrial Chemicals Zone, the statement added.
Chemicals is a priority sector for the UAE's industrial growth strategy. The chemicals set to be produced by the TA'ZIZ EDC and 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 provide local industry with a source of critical raw materials manufactured in the UAE for the first time.