Companies

Shell eyes stake in Nayara Energy's $9 bn Indian petchem project

Reuters NEW DELHI/MOSCOW | Updated on August 12, 2020 Published on August 12, 2020

A file picture of Shell logo   -  Reuters

The 1.8 million tonnes a year full steam ethylene cracker and linked downstream units to be built at Vadinar in western Gujarat

Oil major Royal Dutch Shell plans to buy a 50 per cent stake in Indian-based Nayara Energy's up to $9 billion planned petrochemical project, a source familiar with the matter said.

Global oil majors are looking at expanding 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, the source said, adding an equal joint venture will be created for building the project.

“The petrochemical joint venture between Nayara and Shell was discussed at board of directors meetings of Nayara in November and December last year,” another source said.

The 1.8 million tonnes a year full steam ethylene cracker and linked downstream units to be built at Vadinar in western Gujarat state would cost $8 billion-$9 billion and would be completed in five years, the first source said.

The project will also have an aromatic complex and capacity to produce 10.75 million tonnes of a variety of petrochemicals, according to Nayara's proposal to the environment ministry.

Shell declined to comment on the project while Nayara did not respond to a Reuters request for comment.

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Published on August 12, 2020
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