ADNOC & Reliance Ink Pact for Chemical Project at TA’ZIZ in Ruwais
Abu Dhabi National Oil Company announced that Reliance Industries Limited has signed an agreement to join a new world-scale chlor-alkali, ethylene dichloride and polyvinyl chloride production facility at TA’ZIZ in Ruwais, Abu Dhabi. The agreement capitalizes on growing demand for these critical industrial raw materials and leverages the strengths of ADNOC and Reliance as global industrial and energy leaders. 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.
The agreement continues the momentum of ADNOC’s downstream and industry growth plans in line with ADNOC’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 is gearing up for growth with TA’ZIZ, the world-scale chemicals production hub and industrial ecosystem based in Ruwais, with investment in excess of AED 18 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, fertilizers and gas pipelines.
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.
Chlor-alkali is used in water treatment and in the manufacture of textiles and metals. Ethylene dichloride is typically used to produce PVC. PVC has a wide range of applications across housing, infrastructure and consumer goods. The market for these chemicals is expected to enjoy steady growth supported by the needs of growing demand, particularly in Asia and Africa.
Since its launch in November 2020, TA’ZIZ has made significant progress. Development activities at the site have moved forward, with land and marine surveys already completed. Considerable interest has been received from local and international investors in opportunities across the entire ecosystem and value chain, and agreements with the first phase of investors are nearing finalization. Contracts have been awarded for the first stages of development of the TA’ZIZ site, and work is already underway. This includes geotechnical and topographical surveys, a marine bathymetric survey and health, safety, and environment impact assessments, which have already been completed. The surveys will enable civil engineering works to commence, preparing the TA’ZIZ site for construction as well as dredging for an entirely new port facility.
Tenders for the initial design of the seven TA’ZIZ chemicals derivatives projects have been awarded and work is ongoing. Final investment decisions for the projects and awards of related EPC contracts are being targeted for 2022.