Reliance Industries Chairman Mukesh Ambani. Photo: AFP

Reliance Industries, run by Mukesh Ambani, India’s richest man, is planning to start its first venture in the Gulf region.

The oil-to-telecom conglomerate has entered into an agreement with TA’ZIZ – a joint venture between Abu Dhabi state energy giant ADNOC and state holding company ADQ. They will jointly invest US$2 billion to set up a petrochemical production facility in the United Arab Emirates.

However, Reliance officials said the equity structure of TA’ZIZ EDC & PVC had not been finalized.

TA’ZIZ is a recently-formed joint venture involving Abu Dhabi state energy giant ADNOC and state holding company ADQ, aimed at developing the facility at Ruwais in western Abu Dhabi.

“TA’ZIZ and Reliance Industries have agreed to launch TA’ZIZ EDC & PVC, a world-scale chemical production partnership at the TA’ZIZ Industrial Chemicals Zone in Ruwais, Abu Dhabi,” the company said in a statement.

The new joint venture will construct and operate a Chlor-alkali, ethylene dichloride and a polyvinyl chloride production facility. Chlor-alkali is used in water treatment and in the manufacturing of textiles and metals. Ethylene dichloride is used for producing polyvinyl chloride, which is commonly used in pipes, fittings, profiles, tubes, windows, doors, sidings, wire, cable, film, sheet and flooring.

ADNOC plans to spend $45 billion with partners to develop its downstream operations in Ruwais. These projects include adding refining and petrochemical capacity. It now pumps most of the UAE’s 3 million barrels per day of crude oil.

For Reliance, the new investment is in line with its earlier announcement of investing in West Asia after its stake sale deal with Saudi Aramco was put on the back burner.

Meanwhile, there are reports that Saudi Aramco may consider investing in the solar and specialty chemicals businesses of Reliance Industries. The Saudi government-controlled oil major had earlier set a target of achieving net-zero greenhouse emissions by 2050.

Reliance planned to set up four Giga factories in Jamnagar in Gujarat state. Aramco may source solar photovoltaic modules and storage modules from these factories.