|17 October, 2019

ADNOC, BASF weighs $4bln Indian chemicals complex with partners

BASF signed a memorandum of understanding with Abu Dhabi National Oil Company (ADNOC), Adani Group and Borealis AG to build the chemical site

Flags of the German chemical company BASF are pictured in Monheim, Germany April 20, 2012. REUTERS/Ina Fassbender/File Photo GLOBAL BUSINESS WEEK AHEAD PACKAGE - SEARCH 'BUSINESS WEEK AHEAD 24 OCT' FOR ALL IMAGES

Flags of the German chemical company BASF are pictured in Monheim, Germany April 20, 2012. REUTERS/Ina Fassbender/File Photo GLOBAL BUSINESS WEEK AHEAD PACKAGE - SEARCH 'BUSINESS WEEK AHEAD 24 OCT' FOR ALL IMAGES

Reuters

FRANKFURT - German chemicals maker BASF is teaming up with partners to study the feasibility of a petrochemical complex in India worth up to $4 billion, which would be the world's first to be fully powered by renewable energy.

BASF said on Thursday it had signed a memorandum of understanding with Abu Dhabi National Oil Company (ADNOC), Adani Group and Borealis AG to further evaluate a collaboration to build the chemical site in Mundra, in India's Gujarat state.

BASF would foot roughly half of the overall investment bill, a spokesman added.

Under the plan, the partners would build a plant to produce propylene from propane gas to be supplied by ADNOC.

Some of the propylene would go into a complex to produce polypropylene plastic, to be owned by ADNOC and Borealis, with the rest of the propylene to be used by a joint venture between BASF and Adani to make intermediate chemical products.

(Reporting by Ludwig Burger; Editing by Mark Potter) ((ludwig.burger@thomsonreuters.com; +49 69 7565 1311; Reuters Messaging: ludwig.burger.thomsonreuters.com@reuters.net))

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