Royal Dutch Shell, the UK based gas & oil major, is in talks with the Indian energy firm, Nayara, to buy a 50% stake in its petrochemical project, which is worth 6.9 billion pounds ($9B).
Earlier in June, both the companies, Nayara and Royal Dutch Shell (RDSA), signed an MOU stating that an equal joint contribution will be made for creating the project. Meanwhile, many other oil majors are eyeing to make their foothold in the Indian market, where the local oil refiners are spending trillion of rupees to increase their petrochemical capacity.
India, which is seeking to promote cheaper, durable material in sectors such as food packaging and farming, is expecting an increase in demand for goods made from petrochemicals, like paint & plastics, in the coming time.
The project, which includes 1.8M tonnes per year linked downstream units, and full steam ethylene is expected to cost around 8 to 9 billion dollars and would be made in Vadinar, Gujarat. The project will also contain a complex aromatic capacity to generate 10.75M tonnes of several petrochemicals.
RDSA operates a liquid natural gas port, import terminal, a plant to turn waste into fuel energy, and fuel stations. The South Asian nation’s environment minister is about to hold a meeting on the same on 29-30th August.
Besides, Nayara is expected to increase its current barrels per day capacity from 400,000 to 920,000 in its Vadinar refinery. The expansion project and the Petrochem project is forecasted to cost around 13B pounds.