Reliance Industries NSE and Abu Dhabi National Oil Company (ADNOC) have signed a framework agreement to explore the development of an Ethylene Dichloride (EDC) facility in Ruwais, the companies said in a joint statement late Tuesday.
The planned unit will help RIL in procuring EDC, a key raw material used in the manufacturing of a polymer product, Polyvinyl chloride (PVC). PVC products are used in the housing and agriculture sectors, and demand for it, particularly in the Indian vinyl market, is expected to grow.
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 cooperation ideally combines advantaged feedstock and energy from the UAE with Reliance’s execution capabilities and the growing Indian market,” RIL executive director Nikhil Meswani was quoted as saying in the statement.
RIL will provide the planned joint venture operational expertise and
expertise and entry to the large and growing Indian vinyl market, in which it is a key participant.
ADNOC would supply ethylene to the potential JV and provide access to infrastructure at Ruwais in Abu Dhabi. The pact is part of ADNOC’s strategy to expand the downstream portfolio and international market access by 2030.
As per the pact, ADNOC and RIL will evaluate the potential creation of a facility that manufactures EDC adjacent to ADNOC’s integrated refining and
petrochemical site in Ruwais, Abu Dhabi, and strengthen the companies’ existing relationship supporting future collaboration in petrochemicals.
Source: http://bit.ly/2EcXAZf