Abu Dhabi National Oil Co., Adani Group, BASF SE, and Borealis AG have signed a memorandum of understanding to conduct a joint feasibility study to further evaluate a collaboration for the establishment of a chemical complex in Mundra, Gujarat, India.
The MOU forms part of the next step of BASF’s and Adani’s investment plans as announced in January that, along with ADNOC and Borealis as potential partners, will examine various structuring options for the chemical complex to leverage the technical, financial, and operational strengths of each company for a proposed total investment of up to $4 billion, the companies said.
The collaboration includes evaluating a joint world-scale propane dehydrogenation (PDH) plant to produce propylene based on propane feedstock to be supplied by ADNOC that will be partially used as feedstock for a polypropylene (PP) complex, owned by ADNOC and Borealis, based on proprietary Borealis Borstar technology.
The PP complex will be the first overseas production joint investment by ADNOC and Borealis as part of a strategic framework with their current Abu Dhabi Polymers Co. Ltd. (Borouge) joint venture.
Propylene also will be the key raw material for the previously announced acrylics value-chain complex comprising glacial acrylic acid (GAA), Oxo-C4 (butanols and 2-ethylhexanol), butyl acrylate (BA), and other potential downstream products as part of a joint venture of BASF and Adani, in which BASF holds a majority.
The designated site for the proposed complex is planned at Mundra port in Gujarat, with products produced by the complex to be predominantly targeted for the Indian market, serving a wide range of local industries, including construction, automotive, and coatings.
The Mundra chemical complex is planned to be entirely supplied from renewable energy resources, with the partners evaluating co-investment in a wind and solar park with the plans at an advanced stage of development.
If realized, the proposed petrochemical complex would be the world’s first CO2-neutral site to be fully powered by renewable energy, fully in line with the partners’ commitment to sustainability and energy efficiency.
The partners said they plan to finalize the joint feasibility study by the end of first-quarter 2020.
If approved, production from the site would begin in 2024.
Robert Brelsford | Downstream Editor
Robert Brelsford joined Oil & Gas Journal in October 2013 as downstream technology editor after 8 years as a crude oil price and news reporter on spot crude transactions at the US Gulf Coast, West Coast, Canadian, and Latin American markets. He holds a BA (2000) in English from Rice University and an MS (2003) in education and social policy from Northwestern University.
