The Emirates news agency (WAM) reported that the Abu Dhabi National Oil Company (ADNOC) inked an agreement with India’s Reliance Industries Limited (RIL) for the development of an ethylene dichloride (EDC) facility in Ruwais, Abu Dhabi, according to Gulf Business.
“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.
The agreement stipulated that ADNOC and RIL will evaluate the potential of developing a facility to manufacture EDC adjacent to ADNOC’s integrated refining and petrochemical site in Ruwais.
Under the agreement, ADNOC would provide an access to the infrastructure and ethylene to the potential joint venture (JV). Meanwhile, RIL will provide operational expertise and entry to the Indian vinyls market.
EDC is an integral unit to develop PVC, a polymer product that has a global demand particularly in the Indian vinyls market and it is essential in housing and agriculture sectors.
Nikhil Meswani, RIL Executive Director, said, “this is a significant step towards Reliance’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.”
Signing this agreement entails strengthening the companies’ existing relationship for more future collaboration in petrochemicals.