Nayara Energy, a downstream energy and petrochemical company has signed a financial agreement with a consortium of banks led by State Bank of India for a project term loan of INR 4,016 crore. The loan facility carries a tenure of over 15 years.
Nayara Energy shall use the funds to set-up a 450 KTPA polypropylene plant. Earlier, in 2019, Nayara Energy had first announced its plans to expand into petrochemicals at the Vibrant Gujarat Summit.
More About the Polypropylene Project Plan
The Polypropylene (PP) Unit project named “Asset Development Project-1 (ADP-1)” will be setup at Nayara Energy’s existing 20 MMTPA Vadinar Refinery in Gujarat, so no fresh land acquisition will be required.
Polypropylene unit will be using Propylene as feedstock from Vadinar Refinery’s existing FCC unit. Construction of first phase of the 450 KTPA petrochemicals project is expected to be completed in 2023.
Also, in 2019, Nayara had acquired technology for production of all Polypropylene (PP) grades and licensed Unipol Polypropylene process technology from W.R Grace & Co.
W.R Grace & Co is an American chemical business based in Columbia and its all gas-phase UNIPOL® PP Process Technology is one of the most reliable technologies available for polypropylene production.
As per ChemAnalyst Market Analysis report- July 2021, “India’s Polyol demand currently stands around 261 KT and is anticipated to grow at a CAGR of 7.09 % by 2030”. This translates to an estimated demand of about 485 KTPA by 2030 from India alone.
Dr. Alois Virag, Chief Executive Officer, Nayara Energy said “The financial closure brings to fruition our growth plans to become one of the largest integrated energy and petrochemicals complexes in the country. With this foray into petrochemicals, we are committed to make India a world-class petrochemicals hub’’ as mentioned in company’s press-release dated 26th August 2021.
Anup Vikal, Chief Financial Officer, Nayara Energy also said “The project will provide a boost to the profitability of the Company and improve Nayara Energy’s overall financial performance over the next few years in line with the asset development strategy adopted by the shareholders’.
About Nayara Energy Ltd.: Nayara Energy is a downstream energy and petrochemicals company. It owns and operates India’s second largest single site refinery at Vadinar, Gujarat with a current capacity of 20 MMTPA. The refinery is one of the World’s most modern and complex refineries with a complexity of 11.8, which is amongst the highest globally.