The Abu Dhabi National Oil Company (ADNOC) has reportedly partnered with the Adani Group as it seeks entry into the chemicals business. Earlier this year, Adani had teamed up with Germany’s BASF SE for the same.

European chemical firm Borealis AG has also reportedly inked an MoU to conduct a feasibility study for setting up a $4 billion chemical complex in Mundra, Gujarat.

Evidently, the inclusion of ADNOC and Borealis as potential partners will provide extensive structuring options for setting up the chemical complex. The three companies apparently plan to leverage their joint technical and operational expertise as well as financial resources for the project.

Notably, Reliance Industries is presently a major petrochemicals supplier in the country, along with several government owned businesses. Adani’s entry into the chemicals business will supposedly heat up the competition.

Sources familiar with the development reported that Adani had entered into the natural gas business through LNG trade and city gas distribution. However, it seems that the company is not into exploration and production.

Apparently, the newly-formed partnership will also help the three parties asses co-investments in a wind and solar park, which is currently at an advanced stage of development. Power generated from this facility will evidently be used to power the chemical complex.

The three parties confirmed plans to collaborate on evaluating a joint propane dehydrogenation (PDH) plant. ADNOC will reportedly handle the distribution and supply of propylene obtained from propane feedstock. 

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It has also come to the fore through authentic sources that ADNOC and Borealis will use the propylene as feedstock at a polypropylene (PP) complex which will be based on Borealis’ proprietary technology Borstar.

The PP complex will evidently be the first overseas joint investment by Borealis and ADNOC as part of their strategic framework in addition to their current joint venture Borouge.

The Adani Group stated that products manufactured at the chemical complex, which will be the world’s first CO2-neutral chemical facility that fully runs on renewable energy, will be predominantly for India.

ADNOC will play a key role as the propane feedstock supplier for this project, said Sultan Al Jaber, UAE Minister of State and ADNOC Group CEO.

Source credit: https://www.business-standard.com/article/companies/adnoc-partners-adani-basf-for-4-billion-mundra-chemical-complex-119101701283_1.html