Sector News

Taiwan’s CPC scraps plans for petchems JV with Adani in India

January 23, 2019
Chemical Value Chain

CPC Corp. (Taipei, Taiwan), a state-owned energy group, says it has scrapped plans to build a petrochemical complex at the Mundra special economic zone in India’s Gujarat State. CPC had been in talks with the Adani (Ahmedabad, India) conglomerate to form a joint venture (JV) for the project. However, after assessing the likely investment costs, based on estimates from the consultant Axens Horizon, CPC says the proposed project would be too expensive.

The project would have cost an estimated NT$400 billion ($12.95 billion), according to Axens, which carried out an assessment from July to November last year. This was more than twice CPC’s original estimate. CPC says it has decided to find another location in India for the petrochemical project and will establish an office in the country to learn more about its investment environment, taxation system, and related regulations.

Adani last week announced a partnership with BASF to evaluate a petrochemical JV at Mundra in the C3 value chain. That project will include a propane dehydrogenation facility, together with oxo alcohols, acrylic acid, and acrylates plants, and will cost an estimated $2.3 billion.

CPC says that under the Taiwan government’s New Southbound Policy, it will continue to seek investment opportunities in India. CPC says it is in talks with Indian companies including state-run Indian Oil, and Oil & Natural Gas Corp., on cooperation and investment opportunities.

Indian Oil said last year that CPC planned to invest $6.6 billion at Indian Oil’s Paradip refinery to build a steam cracker and downstream petchem units. CPC has been looking to invest outside Taiwan because it is almost impossible to obtain permits for petrochemical projects in that country. The company is also in talks with Pertamina to establish a petchems JV in Indonesia.

By Natasha Alperowicz

Source: Chemical Week

Related News

May 8, 2021

Nouryon announces intention to spin-out Nobian, its base chemicals business, strengthening focus on key growth end-markets

Chemical Value Chain

The separation is expected to be completed by early Q3, following the receipt of all relevant approvals, including final Board approval. Nouryon intends to reduce its own debt with proceeds received from a planned external financing by Nobian.

May 8, 2021

US Trinseo seeks to build Asian PMMA plant, compounding line

Chemical Value Chain

Trinseo became a producer of the resin when it acquired Arkema’s PMMA business. It announced that it closed on the €1.14bn deal earlier this month.

May 8, 2021

SIG unveils tethered caps for carton packs ahead of EU’s Single-Use Plastics Directive

Chemical Value Chain

As part of the EU’s Single-Use Plastic Directive (SUPD), it will become mandatory for caps and lids to remain attached to all beverage containers up to three liters in capacity from 2024.

Send this to a friend