On June 29, the Abu Dhabi National Oil Company (ADNOC) announced a strategic partnership with Reliance Industries Limited (RIL) to participate in a new world-scale chlor-alkali, ethylene dichloride, and polyvinyl chloride (PVC) production facility at TA'ZIZ in Ruwais, Abu Dhabi.
Share of the company opened the trade higher on Wednesday. The stock was trading at Rs 2,094, up 0.34% on NSE.
The partnership takes advantage of the rising demand for these important industrial raw materials and combines ADNOC and Reliance's strengths as global industrial and energy leaders. The project will be built at ADNOC and ADQ's joint venture, TA'ZIZ Industrial Chemicals Zone.
The Emirate of Abu Dhabi owns 100% of ADNOC, a leading diversified energy and petrochemicals company. ADNOC's goal is to maximise the value of the Emirate's huge hydrocarbon reserves through responsible and sustainable exploration and production to help the UAE grow and diversify its economy.
The deal maintains ADNOC's downstream and industry expansion objectives, which are in accordance with the company's 2030 vision. A number of projects in the downstream and industry portfolio are now under construction, including petrochemical, refining, and gas expansion projects. ADNOC is preparing for expansion with TA'ZIZ, a world-scale chemicals manufacturing hub and industrial ecosystem based in Ruwais, with an investment of more over AED 18 billion and a number of downstream and industry growth projects. ADNOC has attracted significant foreign direct investment from multinational investors since 2018.
TA'ZIZ has made great progress since its inception in November 2020. Land and marine surveys have already been conducted at the site, indicating that development is moving forward. Local and international investors have expressed strong interest in prospects across the ecosystem and value chain, and agreements with the first round of investors are nearing completion.
Tenders for the basic design of the seven TA'ZIZ chemicals derivatives projects were won, and development is currently underway. The projects' final investment decisions and the awarding of relevant EPC contracts are scheduled for 2022.