BASF, one of the leading chemical manufacturers and distributer across the globe announced its plans to review the investment on a mega Petrochemical project in India stressed by the uncertainties created by the Pandemic blows. The project worth USD 4 Billion was signed under a four partite MoU (Memorandum of Understanding) between Adnoc, BASF, Borealis and Adani Group on 4 October 2019, after the approval of the joint feasibility study for development of the large-scale chemical complex in Mudra, Gujarat.
The outline of project comprises of a Propylene unit, Propane Dehydrogenation Plant (PDH) and a complex mainly for acrylics value chain. The plan if executed will give rise to the world’s first petrochemical plant fully operated on renewable energy. According to BASF, market uncertainties caused as a ripple effect of global pandemic has made the company to raise a second though over the timing of investment. Hence, despite continuous measures to abide by the optimum configuration and scope, all plans for this chemical complex have been stalled. However, since India showcase tremendous growth opportunity, BASF ensured that it would continue checking upon periodical market conditions for availing any new opportunities with time.
As per ChemAnalyst “the chemical industry is highly fragile to market uncertainties due to its direct subjection to cynical sectors like construction, automotive. The extreme downturn faced in the petrochemical industry in first half of the year has made the company cautious over prevailing uncertainties due to resurgence of pandemic in several parts of the Asian and European regions.”