Nayara Energy to invest Rs 68,000 crore in foreign-led ethane cracker project

Nayara Energy plans to invest Rs 68,000 crore to establish a 1.5 MTPA ethane cracker at its 20 MTPA refinery in Vadinar, Gujarat. This becomes the first time that a foreign firm invests in this industry in India, in particular the petrochemical industry.

Front-end engineering for the petrochemicals project has now been initiated by Nayara. The Vadinar refinery offers significant advantages, including integration opportunities and convenient access to the port. Its strategic location in western India places it at the heart of the country’s largest petrochemical market.

India’s petrochemical industry growth

By 2030, it is anticipated that India’s petrochemical capacity will have increased from 29.62 million tonnes to 46 million tonnes. Several Indian companies, including Gail India, Indian Oil Corporation, and Bharat Petroleum, have recognised the potential in the petrochemical sector. Collectively, they have invested over Rs 1.5 lakh crore in various petrochemical projects.

Ethane crackers convert hydrocarbons like ethane into ethylene, which is the main ingredient in synthetic rubber, adhesives, and plastics. Bharat Petroleum is investing nearly USD six billion to develop a similar ethane cracker project at its Bina refinery. Meanwhile, Gail India has committed Rs 60,000 crore to establish a 1.5 MTPA ethane cracker in Madhya Pradesh.

https://www.manufacturingtodayindia.com/nayara-energy-to-invest-rs-68000-crore-in-foreign-led-ethane-cracker-project

 

 

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