Mumbai (Maharashtra) [India], April 26 (ANI): Reliance Industries Limited (RIL) and Abu Dhabi Chemicals Derivatives Company RSC Ltd (TA'ZIZ) have signed a formal shareholder agreement for setting up a chemical project at TA'ZIZ Industrial Chemicals Zone, Ruwais in the United Arab Emirates (UAE), according to a joint statement issued by the companies on Tuesday.
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, UAE.
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), according to a joint statement issued by Reliance Industries, TA'ZIZ and Abu Dhabi National Oil Company (ADNOC).
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", it said.
The formal shareholder agreement was signed by senior executives during a visit of Mukesh Ambani, Chairman and Managing Director of Reliance Industries, to ADNOC headquarters.
During the visit, Ambani met with Sultan Al Jaber, UAE's 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 decarbonisation across the hydrocarbon value chain.
"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," Mukesh Ambani said in the statement.
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. Bilateral trade between both nations will be boosted as new trade and development opportunities, such as TA'ZIZ, are further unlocked.
Commenting on the deal, Sultan Al Jaber, UAE's Minister of Industry and Advanced Technology, 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 decarbonisation, new energies and upstream production."
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, the statement said.
During their meeting, Al Jaber and 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 decarbonisation of operations, including in carbon dioxide (CO2) sequestration.
During his visit to the UAE, Mukesh Ambani also met 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. (ANI)