$4 billion petrochemical complex in India put on hold due to COVID-19
The decision was taken by JV partners - Abu Dhabi National Oil Company (ADNOC), Adani Group, German chemical firm BASF, and Borealis AG - after a feasibility study of the project which comprised a propane dehydrogenation (PDH) plant, a polypropylene (PP) production and an acrylics value chain complex.
A petrochemicals complex in India worth up to $ 4 billion has been put on hold - by the joint venture partners comprising Abu Dhabi National Oil Company (ADNOC), Adani Group, German chemical firm BASF, and Borealis AG - due to the economic uncertainty caused by the COVID-19 pandemic.
As part of a four-party Memorandum of Understanding (MoU), signed on October 4, 2019, ADNOC, Adani Group, BASF and Borealis have completed a Joint Feasibility Study for a chemical complex in Mundra, India. The project study comprised a world-scale propane dehydrogenation (PDH) plant, a polypropylene (PP) production and an acrylics value chain complex. The planned location at Adani’s Mundra site would enable access to a world-class port and renewable energy supply.
“The global economic uncertainties caused by the pandemic have led the Partners to review the timing for undertaking this investment. Despite all attempts to optimize the scope and the configuration, the project has been put on hold,” said BASF in a press release.
“The partners remain convinced about the strong fundamentals represented by the Indian market and agreed to periodically explore market conditions and discuss any opportunity that may arise over time,” the release added.
ADNOC is one of the world’s leading diversified energy and petrochemicals groups and is a primary catalyst for the UAE’s growth and diversification.
Adani Group is a diversified organisation in India has created world class transport and utility infrastructure portfolios with a pan-India presence. Over the years, Adani Group has positioned itself to be the market leader in its transport logistics and energy utility portfolio businesses focusing on large scale infrastructure development in India with O & M practices benchmarked to global standards.
Borealis is one of the world’s leading providers of advanced and circular polyolefin solutions and a European market leader in base chemicals, fertilizers and the mechanical recycling of plastics.