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Adani Group inks MoU for $4-billion chemical venture

The partners are aiming to finalise the joint feasibility study by the end of the first quarter of 2020 and intend to start production in 2024.

By: ENS Economic Bureau | Ahmedabad | Updated: October 18, 2019 4:18:01 am
This is the next step of BASF’s and Adani’s investment plans as announced in January 2019.

Gujarat-based Adani Group has signed a memorandum of understanding (MoU) with Abu Dhabi National Oil Company (ADNOC), BASF and Borealis for a joint feasibility study to evaluate a collaboration for the establishment of a chemical complex at Mundra in Kutch district.

The partners are aiming to finalise the joint feasibility study by the end of the first quarter of 2020 and intend to start production in 2024. This is the next step of BASF’s and Adani’s investment plans as announced in January 2019. With the inclusion of ADN-OC and Borealis as potential partners, the parties are examining various structuring options for the chemical complex that will leverage the technical, financial and operational strengths of each firm. Total investment is estimated to be up to $4 billion.

“We are very pleased to collaborate with our international partners to establish a Chemical Manufacturing Complex at Mundra Port. We stand committed to the ‘Make in India’ initiative and serve the larger purpose of aligning growth opportunities with creation of goodness for the nation,” stated Gautam Adani, chairman of the Adani Group. The designated site is planned at Mundra port in Gujarat and the products are predominantly for the Indian market, serving a wide range of local industries, including construction, automotive and coatings. The chemical complex is intended to be entirely supplied from renewable energy resources. The partners are evaluating co-investment in a wind and solar park; plans are at an advanced stage of development. If realised, this would be the world’s first CO2-neutral petrochemical site to be fully powered by renewable energy.The collaboration includes evaluating a joint world-scale propane dehydrogenation plant to produce propylene based on propane feedstock to be supplied by ADNOC. —FE

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