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BASF pauses plan to set up $4 bn chemical complex in Gujarat with Adani

The project study comprised a world-scale propane dehydrogenation plant, a polypropylene (PP) production and an acrylics value chain complex

BASF India  | Adani Group | Gujarat

Press Trust of India  |  New Delhi 

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 would be used in the chemical complex

German chemical giant BASF on Thursday said it has put on hold plans to set up a USD 4-billion chemical complex in in partnership with Adani group, Adnoc and Borealis, due to economic uncertainties caused by the COVID-19 pandemic.

In October 2019, billionaire Gautam Adani-run had forged a partnership with the UAE's oil firm Adnoc, BASF and Austria's Borealis to study the feasibility of setting up the USD 4-billion chemical complex at Mundra in by 2024.

"The global economic uncertainties caused by the pandemic have led the partners to reviewthe timing for undertaking this investment. Despite all attempts to optimise the scope and configuration, the project has been put on hold," BASF said in a statement on its website.

The four 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, it added.

As part of a four-party memorandum of understanding, Abu Dhabi National Oil Company (ADNOC), Adani Group, BASF and Borealis AG have completed a joint feasibility study for a chemical complex in Mundra, Gujarat, the statement said.

The project study comprised a world-scale propane dehydrogenation plant, a polypropylene (PP) production and an acrylics value chain complex.

The planned location at Adani'sMundra site would enable access to a world-class port and renewable energy supply.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Thu, November 05 2020. 22:41 IST