Abu Dhabi government-owned International Petroleum Investment Company (Ipic) has signed a memorandum of understanding with Austrian subsidiary Borealis to develop a chemicals complex in the United Arab Emirates, the state news agency Wam reported on Wednesday.
The multi-billion dollar project to build a "chemicals industrial city" will be located in the emirate of Abu Dhabi, Wam said. Abu Dhabi is the largest emirate in the UAE and holder of 90 per cent of the Gulf Arab state's oil reserves. Abu Dhabi Investment Council has also signed the memorandum.
The complex will include cracking and reforming units to process petrochemical feedstock naphtha. Upon completion of the first phase of the project in 2013, the complex will be the largest of its kind in the world.
Ipic owns 65 per cent of Borealis, while Austria's OMV owns the remaining 35 per cent.
Borealis is a joint partner with state-run Abu Dhabi National Oil Company (Adnoc) in UAE based petrochemical producer Borouge.
The UAE is the world's fifth-largest oil exporter. Ipic invests in oil and gas-related assets for the government as part of a drive to diversify assets. (Reuters)
Follow Emirates 24|7 on Google News.