Shell to invest $9 bn in Indian petrochemical project |
British-Dutch multinational oil and natural gas major Royal Dutch Shell is planning to buy a 50% stake in Indian-based Narayan Energy`s up to $9 billion planned petrochemical project. Global oil majors have been looking at expanding their foothold in the vast Indian market, where local refiners are investing billions of dollars to boost their petrochemical capacities. Shell and Nayara – which is part-owned by Russian oil major Rosneft, signed a memorandum of understanding in early June, and subsequently, an equal joint venture will be created for building the project. According to sources, “The petrochemical joint venture between Nayara and Shell was discussed at board of directors meetings of Nayara in November and December last year.” The 1.8 million tonnes a year full steam ethylene cracker and linked downstream units to be built at Vadinar in western Indian state of Gujarat, would cost $8 billion-$9 billion and would be completed in five years. According to Nayara`s proposal to the environment ministry, the project will also have an aromatic complex and capacity to produce 10.75 million tonnes of a variety of petrochemicals.
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