The two energy giants, ADNOC (Abu Dhabi National Oil Company) and Austria-based chemical company Borealis, have decided to put an ambitious chemical complex project planned for Mundra in India on hold.
Along with ADNOC and Borealis, the Germany-based BASF and India’s Adani are also a part of the project. Last year, a memorandum of understanding (MoU) was signed by the four companies to “engage in a joint feasibility study to further evaluate a partnership to develop a chemical complex in Mundra, Gujarat.”
The promoters engaged in the project cited the pandemic-induced uncertainty as the reason for the decision to put the project on hold.
The planned site in Mundra situated in the western state of Gujarat is owned by Indian Billionaire Gautam Adani-run Adani Group. The project plans the creation of a port, a “world-class” propane dehydrogenation (PDH) plant, a polypropylene (PP) production and an acrylic value chain complex.
According to the report, the total investment is estimated to be $4 billion but further information about how much each company will hold has not been revealed. The partners aim to start production in the plant in 2024.
According to their statement, “Despite all attempts to optimize the scope and the configuration, the project has been put on hold. The partners remain convinced about the strong fundamentals represented by the Indian market and agree to periodically explore market conditions and discuss any opportunity that may arise over time.”
The initial agreement for the project was signed in the month of October last year after a joint feasibility study for the chemical complex was conducted by the partners.