Netherlands-based Shell To seek 50% Stake in $ 9 Billion Petrochemical Project in Gujarat
Gujarat has always been a viable land of opportunities to get foreign investors. This time too, a foreign oil company has decided to set up an oil refinery in Gujrat. Netherlands-based oil company Royal Dutch Shell intends to take a 50 per cent stake in Nayara Energy’s $ 9 billion future petrochemical project. Russian oil company Rosneft also has a stake in Nayara Energy.
MoU was signed for a stake in June
According to a Reuters report, Shell and Naira signed an MoU in early June for a stake in the project. Accordingly, a joint venture (JV) company with an equal stake will be formed for the project. Shell and Nayara’s petrochemical JV were considered at Naira’s board meetings in November and December last year.
Project to be completed in 5 years
According to the plan, 18 million tonnes per annum full steam ethylene cracker and related downstream units will be manufactured at Vadinar in western Gujarat. These will cost $ 8-9 billion. The project will be completed in 5 years. According to the proposal of Nayara submitted to the Ministry of Environment, the project will also have an aromatic complex. With this, it will produce various petrochemicals of 1075 million tonnes. This will not only increase employment in Gujrat but will significantly contribute to the economy.
Nayara also wants to increase the production capacity of Vadinar Refinery
In addition to the petrochemical complex, Nayara also wants to expand the production capacity of its Vadinar refinery from 4 lakh barrels of Rajana to 9.2 lakh barrels per day. The total expenditure on these two projects is estimated to be around 1.3 lakh crores ($ 17.39 billion). The environment ministry is scheduled to take a final decision on the project of expansion in a meeting of 29–30 August.