AHMEDABAD: The Abu Dhabi National Oil Company (ADNOC) has joined the Adani group for its entry into the chemicals business. In January, Adani had announced a partnership with German major BASF SE for the same.

Along with ADNOC, Borealis AG has also signed a memorandum of understanding (MoU) to conduct a joint feasibility study for setting up a chemical complex at Mundra (Gujarat).

The total investment in the chemical complex is estimated at $4 billion, said a joint press statement. “With the inclusion of ADNOC and Borealis as potential partners, the parties are examining various structuring options for the chemical complex that will leverage the technical, financial, and operational strengths of each company,” it said.

Gautam Adani, Chairman of the Adani Group, stated: “We are very pleased to collaborate with our international partners to establish a Chemical Manufacturing Complex at Mundra Port. We stand committed to the ‘Make in India’ initiative and serve the larger purpose of aligning growth opportunities with creation of goodness for the nation.”

Currently, Reliance Industries is a major supplier of petrochemicals, along with Government-owned refiners. Adani’s entry into chemicals will open a second front, in which the two groups will be competing. Adani had moved into the natural gas business through LNG and city gas distribution, though it is not into exploration and production.

The Adani partnership will also evaluate co-investment in a wind and solar park, plans for which are at an advanced stage. The power generated from this will be used in the chemical complex. The collaboration includes evaluating a joint world-scale propane dehydrogenation (PDH) plant to produce propylene-based on propane feedstock to be supplied by ADNOC.

The complex in Mundra will be powered through renewable energy resources. “If realised, it will be the world’s first CO2-neutral petrochemical site to be fully powered by renewable energy, in line with the partners’ commitment to sustainability and energy efficiency,” said the press release.

Source: dst.news