Abu Dhabi National Oil Co. (ADNOC) has signed a framework agreement with Reliance Industries Ltd. (RIL) of India to explore development of an ethylene dichloride (EDC) plant in Ruwais, Abu Dhabi, UAE.
As part of the agreement, ADNOC and RIL will evaluate the potential creation of a plant that manufactures EDC adjacent to ADNOC’s integrated refining and petrochemical site in Ruwais and strengthen the companies’ existing relationship supporting future collaboration in petrochemicals, ADNOC said.
ADNOC would supply ethylene to the potential joint venture and provide access to infrastructure at Ruwais, while RIL will deliver operational expertise and entry to the large and growing Indian vinyls market, in which it is a key participant, according to ADNOC.
EDC is a basic building-block for manufacture of PVC, a polymer product in increasingly higher demand globally. PVC plays a critical role in the housing and agriculture sectors, and demand for PVC, particularly in the Indian vinyls market, is slated for strong growth.
The signing of the agreement was witnessed by His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, and Mukesh D. Ambani, RIL chairman and managing director. The agreement was signed by Abdulaziz Alhajri, executive director of ADNOC’s downstream directorate, and Nikhil R. Meswani, RIL executive director.
“This is a significant step towards [RIL’s] commitment to pursue backward integration and will pave the way for enhancing PVC capacity in India to cater to the fast-growing domestic market. This cooperation ideally combines advantaged feedstock and energy from the UAE with Reliance’s execution capabilities and the growing Indian market,” said Nikhil R. Meswani, RIL’s executive director.
For ADNOC, the proposed joint venture is an opportunity to further cooperation in the petrochemicals sector between the two countries, as well as aligning with the company’s ambition to expand its downstream portfolio and international market access in line with its 2030 growth strategy.
“The agreement with [RIL] is a product of our strong relationship, spanning over two decades, and a testament to ADNOC’s continued ability to cultivate smart and mutually beneficial international partnerships. We look forward to working closely with RIL to identify opportunities to capitalize on the strengths of the Ruwais ecosystem, while delivering a compelling new commercial platform for satisfying the large Indian PVC market, as well as demand for other fast-growing segments in the region,” said Abdulaziz Alhajri, executive director of ADNOC’s downstream directorate.
Further details regarding the EDC project, including a timeframe, were not disclosed.
