ADNOC and Reliance in $2 billion deal to develop Ta’ziz chemicals project

Abu Dhabi National Oil Company (ADNOC) said on Tuesday that Reliance Industries Limited has signed an agreement to jointly develop a $2 billion major chemicals project at Ta’ziz in Ruwais, Abu Dhabi.

The agreement, signed by Reliance with Abu Dhabi Chemicals Derivatives Company (Ta’ziz), capitalises on growing demand for critical industrial raw materials such as chlor-alkali, ethylene dichloride and polyvinyl chloride (PVC), and leverages the strengths of ADNOC and Reliance as global industrial and energy leaders, the company said in a statement. These chemicals will be produced in the UAE for the first time, "unlocking new revenue streams and opportunities for local manufacturers,” it said.

The project will be constructed in the Ta’ziz Industrial Chemicals Zone, which is a joint venture between ADNOC and ADQ, and represents the first investment by Reliance in the region.

“Reliance is a valued strategic partner and our collaboration at Ta'ziz underscores the important role of industrial and energy co-operation as a means of strengthening the deep-rooted and friendly ties between the UAE and India,” said Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO.

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.

According to ADNOC, the agreement continues the momentum of its downstream and industry growth plans in line with the company’s 2030 strategy. Petrochemical, refining and gas growth projects are currently under construction, with a number of projects also recently completed across the downstream and industry portfolio.

ADNOC said it was gearing up for growth with Ta’ziz, the world-scale chemicals production hub and industrial ecosystem based in Ruwais, with investments in excess of $4 billion and a number of further growth projects in the downstream and industry sector. Since 2018, ADNOC has attracted significant foreign direct investment from international partners in the downstream business including refining, fertilisers and gas pipelines.