Abu Dhabi National Oil Company (ADNOC), Adani Group, BASF and Borealis have signed a Memorandum of Understanding (MoU) to conduct a joint feasibility study to evaluate a collaboration for the establishment of a chemical complex in Mundra, Gujarat, India.
Following the addiction of ADNOC and Borealis as potential partners, the parties are assessing various structuring options for the proposed chemical complex to leverage the technical, financial and operational strengths of each company. The partners are expected to invest a total of up to $4bn in the facility.
UAE Minister of State and ADNOC Group CEO Sultan Al Jaber said: “This exciting collaboration is in line with ADNOC’s strategy to foster mutually beneficial partnerships. As a value-adding partner, ADNOC will play a crucial role as the propane feedstock supplier to this project.
“As the fastest growing global energy market, India is crucial to our international growth ambitions in the downstream sector. As such, this project allows ADNOC and its partners to capture the promising growth in the Indian polyolefins market.”
The Mundra facility is planned to be entirely supplied from renewable energy resources
Under the collaboration, the companies would evaluate a joint propane dehydrogenation (PDH) plant to produce propylene, which is intended to be partially used as feedstock for a polypropylene (PP) complex, owned by ADNOC and Borealis.
ADNOC would supply the propane feedstock for the PDH plant, and the PP complex will process the propylene based on the advanced Borealis Borstar technology.
The products from the PDH plant and PP complex, planned to be built at the Mundra port in Gujarat, India, are aimed to serve the Indian market, comprising a wide range of local construction, automotive and coatings industries.
The joint feasibility study is expected to be finalised by the end of the first quarter of 2020, and production is anticipated to start in 2024.
Borealis CEO Alfred Stern said: “This partnership is a unique opportunity to strengthen our PP presence in India with proprietary Borealis Borstar PP technology and to create value and tangible benefits through innovation for customers across multiple industries.”
