Reliance Industries and Abu Dhabi National Oil Company (ADNOC) signed an agreement to explore development of an Ethylene Dichloride facility in Ruwais, Abu Dhabi.

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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 and strengthen the companies’ existing relationship supporting future collaboration in petrochemicals, Reliance Industries said in a statement issued to exchanges.

“ADNOC would 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,” the statement added.

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.

“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,” said Nikhil R. Meswani, Executive Director, RIL.

Disclosure

: RIL, the promoter of Reliance Jio, also controls Network18, the parent company of CNBCTV18.com.