12,224.55-127.8
Stock Analysis, IPO, Mutual Funds, Bonds & More

RIL, ADNOC in pact to explore setting up Ethylene Dichloride JV

"Under the terms of the agreement, ADNOC and RIL will evaluate the potential creation of a facility that manufactures ethylene dichloride or 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," the companies said in a statement.

, ET Bureau|
Updated: Dec 10, 2019, 10.06 PM IST
0Comments
Agencies
Reliance---Agencies
The Indian subcontinent is expected to be the fastest-growing region for EDC demand, with a projected increase of about 17 per cent per year.
NEW DELHI: Reliance Industries and Abu Dhabi National Oil Company (ADNOC) have signed a framework agreement to explore 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 vinyls 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 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 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.

ADNOC said that the agreement underscores companies’ shared interest in leveraging the strength of the Ruwais ecosystem to unlock new value creation opportunities in India.


Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service