Abu Dhabi state-owned Chemicals Derivatives Company (TA’ZIZ) and Reliance Industries Ltd. agreed to build a $2 billion petrochemical plant in Ruwais, Abu Dhabi, TA’ZIZ said in a statement on Tuesday.
This is considered the Indian company’s first such investment in the Middle East.
Abu Dhabi National Oil Co. (ADNOC) and Reliance are exploring ways to turn hydrocarbons into products that will help them tap consumer demand for plastics. The accord builds on a 2019 framework deal to cooperate on petrochemicals, and a further agreement this year to work together at the Ruwais refining hub in Abu Dhabi.
The joint venture, called TA’ZIZ EDC & PVC, will construct and operate a chlor-alkali, ethylene dichloride (EDC) and polyvinyl chloride (PVC) production facility, the statement said.
The JV plans to export the materials to target markets in Southeast Asia and Africa as well as selling them domestically.
“Representing the first production of these chemicals in the UAE, the project will enable the substitution of imports and the creation of new local value chains, while also meeting growing demand for these chemicals globally,” TA’ZIZ said.
TA’ZIZ was formed last year, also as a joint venture, by ADNOC and Abu Dhabi state-owned holding company ADQ, which own 60% and 40% respectively.
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