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Thu 17 Oct 2019 07:15 PM

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UAE's ADNOC inks deal to explore plan for $4bn Indian chemical complex

Abu Dhabi National Oil Company, Adani Group, BASF and Borealis sign agreement to engage in a joint feasibility study for chemicals complex in Gujarat

UAE's ADNOC inks deal to explore plan for $4bn Indian chemical complex

Dr Sultan bin Ahmad Sultan Al Jaber, Minister of State and ADNOC Group CEO.

Abu Dhabi National Oil Company (ADNOC), Adani Group, BASF and Borealis have signed an agreement to engage in a joint feasibility study to further evaluate plans for a $4 billion chemical complex in Mundra, Gujarat, India.

This is the next step of BASF’s and Adani’s investment plans announced in January. With the inclusion of ADNOC and Borealis as potential partners, the parties are examining various structuring options for the chemical complex.

The collaboration includes evaluating a joint world-scale propane dehydrogenation plant to produce propylene based on propane feedstock to be supplied by ADNOC.

Propylene will be partially used as feedstock for a polypropylene complex, owned by ADNOC and Borealis, based on proprietary state-of-the-art Borealis Borstar technology, a statement said.

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The complex will be the first overseas production joint investment by ADNOC and Borealis as part of a strategic framework with their current joint venture Borouge.

The designated site is planned at Mundra port in Gujarat, India, and the products are predominantly for the Indian market, serving a wide range of local industries, including construction, automotive and coatings, the statement added.

The chemical complex in Mundra is intended to be entirely supplied from renewable energy resources and the partners are evaluating co-investment in a wind and solar park.

Dr Sultan bin Ahmad Sultan Al Jaber, Minister of State and ADNOC Group CEO, said: "This exciting collaboration is in line with ADNOC’s strategy to foster mutually beneficial partnerships... As the fastest growing global energy market, India is crucial to our international growth ambitions in the downstream sector."

The partners aim to finalise the joint feasibility study by the end of Q1 2020. Production is intended to commence in 2024.

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