The Abu Dhabi National Oil Company (ADNOC) and Reliance Industries Limited (RIL) have signed an agreement to explore setting up a facility to produce ethylene dichloride (EDC) in Ruwais, UAE.

EDC, a chemical compound, is a basic building-block for the manufacture of polyvinyl chloride (PVC), which is used in the housing and agriculture sectors.

As per the agreement, the companies will evaluate developing an EDC manufacturing facility next to ADNOC’s integrated refining and petrochemical site in Ruwais.

The deal will further strengthen the companies’ relationship supporting future collaboration in petrochemicals.

RIL will provide the potential joint venture (JV) with operational expertise and access to the large and growing Indian vinyl market, in which it is a key participant.

On the other hand, ADNOC would supply ethylene to the joint venture and provide entry to infrastructure at Ruwais.

ADNOC downstream directorate executive director Abdulaziz Alhajri said: “The agreement with Reliance Industries Limited is a product of our strong relationship, spanning over two decades, and a testament to ADNOC’s continued ability to cultivate smart and mutually beneficial international partnerships.

“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.”

The agreement is part of ADNOC’s strategy to expand the downstream portfolio and international market access by 2030.

RIL executive director Nikhil Meswani 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.

“This co-operation ideally combines advantaged feedstock and energy from the UAE with Reliance’s execution capabilities and the growing Indian market.”

ADNOC, Adani, BASF and Borealis to collaborate on $4bn Mundra facility in India

In October, ADNOC, Adani Group, BASF and Borealis had signed a Memorandum of Understanding (MoU) to conduct a joint feasibility study to evaluate a collaboration for the establishment of a chemical complex in Mundra, Gujarat, India.