Indian billionaire Gautam Adani
Gautam AdaniReuters

India's Adani Group has joined hands with three multinational companies to conduct a feasibility study on a $4 billion mega chemical complex at Gujarat's Mundra by 2024.

Apart from billionaire Gautham Adani-controlled Adani Group, the partners in the joint feasibility study are Abu Dhabi National Oil Company (Adnoc), BASF and Borealis, according to a joint press statement.

The proposed venture was first announced by Adani Group in partnership with BASF in January this year, but now the UAE-based oil company Adnoc and European polyethylene and polypropylene producer Borealis have been inducted as partners in the joint venture.

"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 statement said. "Propylene will be partially used as feedstock for a polypropylene (PP) complex, owned by Adnoc and Borealis."

However, details on the equity stake of each partner and timeline for starting the work are yet to be disclosed.

Rely On Renewable Energy

Apart from the petrochemical complex, the joint venture firm will build wind and solar power projects at the site to generate electricity for the mega project.

If realised, this would be the world's first CO2-neutral petrochemical site to be fully powered by renewable energy, completely in line with the partners' commitment to sustainability and energy efficiency.

"This exciting collaboration is in line with Adnoc's strategy to foster mutually beneficial partnerships. As a value-adding partner, ADNOC will play a crucial role as the propane feedstock supplier to this project," Sultan Al Jaber, UAE Minister of State and Adnoc Group CEO, was quoted as saying by Arabian Business.

"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 the creation of goodness for the nation," Adani Group Chairman Gautam Adani said in the statement.

Adnoc has also signed an initial pact to take a stake in a mega refinery-cum-petrochemical complex planned by state-owned oil firms led by Indian Oil Corporation (IOC) in Maharashtra.