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Comment COVID-19

Joint feasibility study for chemical complex in India completed, but project is on hold because of COVID-19 pandemic

By Scott Jenkins |

 

As part of a four-party memorandum of understanding (MoU), signed on October 4, 2019, Abu Dhabi National Oil Company (Abu Dhabi, United Arab Emirates; www.adnoc.ae), Adani Group (Ahmedabad, India; www.adani.com), BASF SE (Ludwigshafen, Germany; www.basf.com) and Borealis AG (Vienna, Austria; www.borealisgroup.com), have completed a joint feasibility study for a chemical complex in Mundra, India. The project study comprised a world-scale propane dehydrogenation (PDH) plant, 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 due to the COVID-19 pandemic.  

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.

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