The Crack of Dawn: Nayara's $8B Petrochemical Ambitions

9 Jan 2025 , 10:06 AM

According to news reports, Rosneft-backed Nayara Energy plans to invest ₹68,000 crore ($8 billion) to establish a 1.5 million tonne per annum (mtpa) ethane cracker at its 20 mtpa refinery in Vadinar, Gujarat.

This will be the first significant foreign investment in the Indian petrochemical sector. According to a top industry executive who talked to ET, “Nayara has started work on front-end engineering for the petrochemicals project.”

The business stated in its annual report for FY24 that it has “adopted a phase-wise asset development strategy in 2018 to enter into the petrochemicals sector and is well-positioned to become a strong petrochemical player due to its unique advantages in terms of opportunity of integration with the refinery, proximity to the port, and location of the refinery in western India which is the largest petrochemical consumption region of the country”.

To develop its petrochemical activities, Gail India, Indian Oil Corp, Bharat Petroleum Corp, and others have announced investments totaling more than ₹1.5 lakh crore in the last year. Adani Petrochemicals, a subsidiary of Adani Enterprises, stated on Monday that it has established an equal joint venture with Indorama Resources of Thailand to enter the chemical, petrochemical, and refinery industries.

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