On 26th April 2022, the Indian multinational conglomerate company, headquartered in Mumbai, Reliance Industries (RIL) and the Abu Dhabi Chemicals Derivatives Company RSC (TA’ZIZ) signed a shareholding agreement for a chemical project in Ruwais, Abu Dhabi.
However, this development delivers high significance, as it will eye on Chlor-alkali, ethylene dichloride (EDC) and polyvinyl chloride (PVC) production, which are used in an extensive variety of industrial applications. Furthermore, it is anticipated to unfold new revenue paths for RIL as well as the Abu Dhabi National Oil Company (ADNOC) and ADQ, an Abu Dhabi-based investment and holding company, who are strategic partners in TA’ZIZ, a joint venture organization.
According to an industry expert, who states that chaired by Indian business magnate, Mukesh Ambani, Reliance Industries Limited (RIL) gains over 60% of its revenue and around 55% of its operating profit from its oil-to-chemicals (O2C) business. This incorporates refining, petrochemicals and fuel retail. Retail and telecom, on the other hand, contribute 29% and 17% each to revenue, respectively.
In the TA’ZIZ chemical project, the investment is estimated at over $2 billion; although RIL explicated that the eventual investment decision was presumed later this year and was of course subject to regulatory approvals.
The Chlor-alkali process is one of the competent industrial processes for the electrolysis of sodium chloride solutions. However, Chlor-alkali capacitates the production of caustic soda, which is a key element in the process of refining alumina. On the other side, EDC is applicable in the production of PVC, which is used to manufacture an extensive range of products including pipes, windows fittings, cables, films and flooring.
India's largest private-sector enterprise RIL said, “A formal shareholder agreement was signed by senior executives during a visit of Mukesh Ambani, the Chairman and Managing Director (MD) of RIL, to the ADNOC headquarters.”
RIL further added, “Sultan Al Jaber, Minister of Industry and Advanced Technology and ADNOC MD and Group CEO exchanged a signed framework agreement with RIL for the exploration, development and production of conventional and unconventional resources in Abu Dhabi as well as in decarbonisation of operations.”
The Industry expert’s closely following the venture commented by saying, “The TA’ZIZ project would benefit from the free trade agreement between India and the United Arab Emirates (UAE), which was signed in February this year. Chemicals were a priority sector for the UAE, with RIL considering investing in more such projects.”
The Chairman and the largest shareholder of Reliance Industries, Mukesh Ambani said, “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 the strengths of the two nations. I am looking forward to the implementation of the project at an accelerated pace, taking a step further in enhancing the lives of our people in the region.”
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