Mukesh Ambani.

INDIA’S Reliance Industries Limited (RIL) and Abu Dhabi National Oil Company (ADNOC) on Tuesday (10) signed an agreement to explore the setting up of a facility in the UAE to produce ethylene dichloride, which goes into the making of PVC that is commonly used in pipes, tubes, and cables.

RIL said in a statement: “Under the terms of the agreement, 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 company’s existing relationship supporting future collaboration in petrochemicals.”

ADNOC will supply ethylene to the potential joint venture and provide access to world-class infrastructure at Ruwais, while RIL will deliver operational expertise and entry to the large and growing Indian vinyls market, in which it is a key participant.

EDC is a basic building-block for manufacture of PVC, a polymer product in increasingly higher demand globally.

PVC plays a critical role in the housing and agriculture sectors, and demand for PVC, particularly in the Indian vinyls market, is expected to grow significantly.

The deal was signed by Abdulaziz Alhajri, Executive Director of ADNOC’s Downstream Directorate, and Nikhil R. Meswani, RIL Executive Director.

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.”