Adnoc is seeking to invest in more downstream assets, mainly in refining and petrochemicals, in strategic locations like India to find a stable outlet for its oil, Al Jaber said.

“India is not only an important market for us. India is a very strategic partner for UAE, spanning all ... sectors, energy being one of (them),” he said, adding Adnoc is also keen to lease more strategic storage in India.

Adnoc, the only foreign company with a deal to store oil in India’s strategic reserves, has signed a preliminary agreement to use half of the Padur strategic reserve facility in southern India. The site can store about 2.5 million tonnes or 18 million barrels of crude. It also has another storage deal agreement at Mangalore’s strategic storage in Karnataka.

In another development, India’s Reliance Industries Limited (RIL) announced plans to develop an ethylene dichloride facility in Ruwais with Adnoc.

Under the terms of the agreement, both companies will evaluate the potential creation of a facility that manufactures ethylene dichloride adjacent to Adnoc’s integrated refining and petrochemical site in Ruwais, Abu Dhabi and strengthen the companies’ existing relationship supporting future collaboration in petrochemicals,” the statement said.

At the heart of Adnoc’s downstream expansion strategy is a $45-billion investment plan aimed at creating the world’s largest integrated refining and petrochemicals complex in Ruwais, Abu Dhabi, which will see the company triple production of petrochemicals to 14.4 million tonnes per annum by 2025.

The signing of the agreement was witnessed Dr Sultan Ahmed Al Jaber, UAE Minister of State and Adnoc Group CEO, and Mukesh D. Ambani, RIL Chairman and Managing Director. The agreement was signed by Abdulaziz Alhajri, Executive Director of Adnocís Downstream Directorate, and Mr. Nikhil R. Meswani, RIL Executive Director.

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.

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.

Alhajri said: “The agreement with Reliance Industries Limited is a product of our strong relationship, spanning over two decades, and a testament to Adnocís continued ability to cultivate smart and mutually beneficial international partnerships. We look forward to working closely with RIL to identify opportunities to capitalise on the strengths of the Ruwais ecosystem, while delivering a compelling new commercial platform for satisfying the large Indian PVC market, as well as demand for other fast-growing segments in the region.”

On his part, Meswani said: “This is a significant step towards Relianceís commitment to pursue backward integration and will pave the way for enhancing PVC capacity in India to cater to the fast growing domestic market.”