ADNOC, RELIANCE INVESTMENT $2 BLN

Under the terms of a strategic agreement, Reliance and TA'ZIZ will build plants with capacity to produce 940,000 mt/year of chlor-alkali, 1.1 million mt/year of ethylene dichloride and 360,000 mt/year of polyvinyl chloride at the TA'ZIZ Industrial Chemicals Zone, ADNOC said in a June 29 statement.

The deal is worth around $2 billion, sources with knowledge of the matter.

ADNOC and ADQ said last November they expected to attract more than $5 billion of third-party investments into petrochemical projects being executed by the TA'ZIZ venture.

The petrochemical deal with ADNOC comes a few days after Saudi Aramco's chairman Yasir al-Rumayyan joined the board of Reliance Industries as an independent director, bolstering ties with a key crude customer and increasing the likelihood of the Saudi oil giant purchasing a stake in the Indian refiner.

For its part, ADNOC wants to woo partners to build chemicals in the industrial hub of Ruwais, where TA'ZIZ is based.

ADNOC announced in 2018 plans to invest $45 billion in its downstream sector alongside partners as it seeks to develop new industries. The national oil producer is expanding its downstream industry as it embarks on a $122 billion spending spree up to 2025 that will help finance various projects, including an oil production capacity ramp-up to 5 million b/d by 2030 from 4 million b/d now.

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