MOSCOW (MRC) -- Reliance Industries Limited (RIL) and RSC Ltd (TA’ZIZ) have signed the formal shareholder agreement for the TA’ZIZ ethylene dichloride (EDC) & polyvinyl chloride (PVC) project, according to Hydrocarbonprocessing.
The TA’ZIZ EDC & PVC joint venture will construct and operate a chlor-alkali, EDC and PVC production facility, with a total investment of over USD2-B. 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.
H.E. Dr. Al Jaber and Mr. 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 CO2 sequestration. Mr. Ambani was also briefed on the 28th session of the Conference of the Parties which is set to be held in the UAE in 2023.
The TA’ZIZ EDC & PVC project is making solid progress towards the detailed design phase in advance of the Final Investment Decision which is expected to be taken later this year.
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 UAE, 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.
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.
As MRC informed before, in November 2021, Reliance Industries and Saudi Aramco decided to re-evaluate their agreement for the Middle Eastern producer to buy a stake in the refining and petrochemical business of India's biggest private refiner, and both companies would look at broader areas of cooperation due to the changing energy scenario.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,487,450 tonnes in 2021, up by 13% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market totalled 1,494.280 tonnes, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas.shipments of PP random copolymers decreased significantly.
Reliance Industries is one of the world's largest producers of polymers. The company produces polypropylene, polyethylene and polyvinyl chloride and other petrochemical products.