MOSCOW (MRC) -- The cost of oil and petrochemicals refinery project to be built jointly by Saudi Aramco and Abu Dhabi National Oil Co. (ADNOC) in India is expected to reach USD70 billion, reported Kemicalinfo with reference to WAM news agency.
A joint economic council between the United Arab Emirates and Saudi Arabia reviewed the planned plant on Wednesday at a meeting on the sidelines of Saudi Crown Prince’s visit to his Gulf ally.
"The initial cost is estimated at USD70 billion, a 36 percent escalation in the project cost of the refinery project due to shifting of the project to Roha in the Raigad district, about 100 km south of Mumbai, from the originally proposed site at Ratnagiri, about 400 km south of Mumbai."
In September, India’s oil minister said the refinery would cost more than the originally planned USD45 billion.
The proposed 1.2 million barrel per day project, to be jointly developed by the Aramco-Adnoc combine and the Indian refiners Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum on a 50:50 partnership basis, is also expected to have a chemicals capacity of 18 million tonnes annually.
As MRC wrote previously, in November 2018, Saudi Aramco and ADNOC signed a framework agreement to explore opportunities for collaboration in the Natural Gas and Liquefied Natural Gas (LNG) sector. The cooperation brings together two of the world’s leading energy producers from the Arabian Gulf to jointly work together in an area of strategic importance for both companies as they seek to boost revenues from the natural gas and LNG business segments. Saudi Aramco and ADNOC will jointly assess investment opportunities across the natural gas and LNG value chain, exchange technical knowledge and expertise in natural gas and LNG growth markets.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,724,670 tonnes in the first ten months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market in January-October 2019 totalled 1,066,520 tonnes, up by 7% year on year. Supply of block copolymers of propylene (PP block copolymer) and homopolymer of propylene (homopolymer PP) increased, demand for statistical copolymers (PP random copolymer) decreased.
Saudi Aramco is an integrated oil and chemicals company, a global leader in hydrocarbon production, refining processes and distribution, as well as one of the largest global oil exporters. It manages proven reserves of crude oil and condensate estimated at 261.1bn barrels, and produces 9.54 million bbl daily. Headquartered in Dhahran, Saudi Arabia, the company employs over 61,000 staff in 77 countries.