The two companies “will construct an integrated plant, with capacity to produce 940 thousand tonnes of chlor-alkali, 1.1 million tonnes of ethylene dichloride and 360 thousand tons of polyvinyl chloride (PVC) annually,” an RIL statement said.
Reliance Industries (RIL) has announced a joint venture with Abu Dhabi National Oil Company (Adnoc) to build a petrochemical production facility in Abu Dhabi. The two companies “will construct an integrated plant, with capacity to produce 940 thousand tonnes of chlor-alkali, 1.1 million tonnes of ethylene dichloride and 360 thousand tons of polyvinyl chloride (PVC) annually,” an RIL statement said. While the financial details of the deal were not disclosed, RIL said the “final investment decisions for the projects and awards of related EPC contracts are being targeted for 2022”.
The announcement is in line with the “internationalisation of Reliance” strategy mentioned recently by RIL chairman Mukesh Ambani while addressing the company’s 44th annual general meeting. The process of internationalisation started with chairman of Saudi Aramco Yasir Al-Rumayyan joining RIL’s board as an independent director, and Ambani had then said “you will hear more about our international plans in the times to come”.
Commenting on the initiative, Ambani said: “It is also yet another testimony to the enormous potential in advancing India-UAE cooperation in value enhancement in the energy and petrochemicals sectors”.
The project will be constructed in the TA’ZIZ Industrial Chemicals Zone, which is a joint venture between ADNOC and Abu Dhabi-based ADQ, and represents the first investment by Reliance in the region. Ethylene dichloride, which the unit will manufacture, is a key building block for production of PVC in India.
Reliance raised `2,60,074 crore through rights issue of Rs 53,124 crore and asset monetisation in FY21, helping it achieve a net debt free balance sheet, ahead of its March 2021 target. Jio Platforms and Reliance Retail raised Rs 1,52,056 crore and Rs 47,265 crore, respectively, and BP invested Rs 7,629 crore for a 49% stake in RIL’s fuel retailing business. Besides, Abu Dhabi Investment Authority invested Rs 5,512.5 crore for a 1.2% equity stake in Reliance Retail.