ADNOC and India's Adani Group put on hold mega chemicals project in Gujarat
COVID-19 and its impact on economies cited as reason for not taking up project
Dubai: Energy giants ADNOC (Abu Dhabi National Oil Co.) and Borealis have decided to put on hold an ambitious chemical complex project planned for Mundra in India. The promoters, which also includes Germany's BASF and India's Adani Group, have cited the uncertainty brought on by the pandemic for the decision.
The planned location at Mundra - in the western state of Gujarat - is owned by Adani. The project envisaged creation of a port, a "world-scale" propane dehydrogenation (PDH) plant, a polypropylene (PP) production and an acrylics value chain complex.
"Despite all attempts to optimize the scope and the configuration, the project has been put on hold," said a statement. "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."
Feasibility is done
The partners had completed a joint feasibility study for the chemical complex. The initial agreement had been signed in October last year.
OMV, the Austrian oil and gas company, owns 75 per cent of Borealis, while the remaining is owned by Abu Dhabi's Mubadala. Borealis operates a joint venture - Borouge - with ADNOC.