As part of a four-party Memorandum of Understanding (MoU), signed on Oct. 4, 2019, Abu Dhabi National Oil Company, Adani Group, BASF SE and Borealis AG, completed a joint feasibility study for a chemical complex in Mundra, India. 

 

The project study comprised a world-scale propane dehydrogenation (PDH) plant, a 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.  

 

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.

 

Last year, BASF and Adani Group had signed the deal and the total investment for the project was estimated to be up to $4 billion.

The collaboration included evaluating a joint world-scale propane dehydrogenation (PDH) plant to produce propylene based on propane feedstock to be supplied by ADNOC. Propylene will be partially used as feedstock for a polypropylene (PP) complex, owned by ADNOC and Borealis, based on proprietary state-of-the-art 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 joint venture Borouge. Furthermore, propylene 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 potentially other downstream products as part of a joint venture of BASF and Adani in which BASF holds a majority.

The designated site is planned at Mundra port in Gujarat, India, and the products are predominantly for the Indian market, serving a wide range of local industries, including construction, automotive and coatings.

The chemical complex in Mundra is intended to be entirely supplied from renewable energy resources. The partners were also evaluating co-investment in a wind and solar park with the plans at an advanced stage of development. If realized, this would be the world’s first CO2-neutral petrochemical site to be fully powered by renewable energy, fully in line with the partners’ commitment to sustainability and energy efficiency.