Page 11 - DMEA Week 17 2022

DMEA PETROCHEMICALS DMEA

ADNOC making petchems progress

MIDDLE EAST ABU Dhabi’s state oil firm made headlines this by ADNOC.
week as it closed a petrochemicals deal with It added that their joint project “is making
India’s Reliance while moving closer to an IPO solid progress towards the detailed design phase
for its plastics venture. in advance of the final investment decision [FID]
Abu Dhabi National Oil Co.’s (ADNOC) Abu which is expected to be taken later this year”.
Dhabi Chemicals Derivatives Co. (TA’ZIZ) joint The new JV will build and operate the chemi-
venture formalised a shareholder agreement cals facility, which will have a capacity of 940,000
with Reliance Industries Ltd (RIL) for the TA’ZIZ tonnes per year of chlor-alkali, 1.1mn tpy of
EDC & PVC project to be located in Ruwais. EDC and 360,000 tpy of PVC.
The agreement follows deals between the par- Meanwhile, reports emerged that ADNOC
ties in June and December last year to develop a and Borealis intend to achieve a valuation of
$2bn plant at the TA’ZIZ Industrial Chemicals $20bn for their Borouge plastics JV in the hope
Zone to produce chlor-alkali, ethylene dichlo- of receiving $2bn for a 10% stake when they
ride (EDC) and polyvinyl chloride (PVC) to launch an initial public offering (IPO) later this
capitalise “on growing demand for these crit- year. While neither of the two firms confirmed
ical industrial raw materials and leverage the this, sources told Bloomberg that plans for the
strengths of ADNOC and Reliance as global IPO could be announced in May.
industrial and energy leaders.” News of the planned share sale came in Feb-
This week’s announcement came during a ruary, with reports suggesting soon after that
visit by RIL chairman and managing director banks had been hired to handle the IPO.
Mukesh Ambani to ADNOC’s headquarters in In December, ADNOC and Borealis awarded
Abu Dhabi. five engineering, procurement and construction
He met with HE Dr. Sultan Al Jaber, UAE (EPC) packages contracts for the development
Minister of Industry and Advanced Technol- of the Borouge 4 polyolefin (PO) plant follow-
ogy and ADNOC managing director and CEO ing their commitment a month earlier to invest
to discuss opportunities for partnership and $6.2bn in the unit by 2025.
growth in upstream, new energies and decar- The first package, which covers early EPC
bonisation across the hydrocarbon value chain. work including site preparation, was awarded to
They signed a framework deal “to explore col- local firm Al Asab General Transport and Con-
laboration in the exploration, development and tracting. Package 2 covering the facility’s 1.5mn
production of conventional and unconventional tpy ethane cracker was awarded to a consortium
resources in Abu Dhabi as well as in decarboni- of France’s Technip Energies with the local Tar-
sation of operations, including in carbon dioxide get Engineering. The deal is understood to be
(CO2) sequestration”, according to a statement valued at $500mn-$1bn.™

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