Page 9 - DMEA Week 40 2021

DMEA COMPANIES DMEA

Reliance launches UAE

fuel trading subsidiary

MIDDLE EAST INDIA’S Reliance Industries Ltd this week incor- block for production of PVC in India. This is a
porated a subsidiary in the UAE to focus on trad- significant step in globalising Reliance’s opera-
ing crude oil, refined products, petrochemicals tions, and we are proud to partner with ADNOC
and agricultural commodities. in this important project for the region.”
In a regulatory filing, the parent firm said that TA’ZIZ is a joint venture (JV) development
it has invested $1mn in cash 1mn equity shares between ADNOC and holding company ADQ
in Reliance International Ltd (RINL). that seeks to drive the development of industrial
Reliance said that no regulatory approvals projects within the planned Ruwais downstream
were required for the deal and the investment hub and drive economic diversification.
could not be categorised as a “related party In related news this week, Reliance said that
transaction”. Saudi Aramco Chairman Yasir Al-Rumayyan
The move follows the June announcement had met all regulatory criteria to be appointed
by Reliance that it would invest in a world-scale as an independent director, with a final decision
chemicals complex at TA’ZIZ within the Ruwais pending shareholder approval following a voting
Derivatives Park led by Abu Dhabi National Oil process that ends on October 19.
Co. (ADNOC). Al-Rumayyan’s appointment to the Reliance
The chemicals facility will produce chlor-al- board is seen as a precursor to progress on Ara-
kali, ethylene dichloride and polyvinyl chloride mco’s proposed deal to acquire a 20% stake in the
(PVC), to capitalise “on growing demand for Indian firm’s downstream business.
these critical industrial raw materials and lever- According to reports in August, the all-
ages the strengths of ADNOC and Reliance as stock deal to buy the participation in RIL’s
global industrial and energy leaders.” oil-to-chemicals (O2C) division would come in
It will have a capacity of 940,000 tonnes at around $20-25bn, equating to around 1% of
per year of chlor-alkali, 1.1mn tpy of ethylene the Saudi firm’s share capital.
dichloride and 360,000 tpy of PVC. The agreement had been widely expected to
At the time, Reliance chairman and managing cost roughly $15bn, giving Reliance O2C a valu-
director Mukesh Ambani said: “The project will ation of $75bn, but the latest report suggests the
manufacture ethylene dichloride, a key building Indian firm’s value would be $100bn-125bn.™

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