Dutch oil giant Royal Dutch Shell is planning to snap up a major stake in a petrochemical businesses. Shell signed a memorandum of understanding to pick up a 50% stake in India-based Nayara Energy’s petrochemical project.
Nayara Energy Limited (formerly Essar Oil Limited), which also runs India’s second-largest single-site refinery that makes up 8% of India’s total refinery capacity, is 49.13% owned by PJSC NK Rosneft, which it picked up in August of 2017.
Shell already has a presence in India, including fuel stations, an LNG import terminal, a port, and a plant that turns waste into gasoline and diesel.
Another of Shell’s petrochemical complex projects in the USA has suffered setbacks as a result of the pandemic, announcing in the early stages of the pandemic that it would suspend construction activity in its Beaver County petrochemical facility in Pennsylvania out of fear for its workers.
Development later resumed, then stopped, before resuming yet again. A new and equal joint venture will be created for building the project, Reuters reported on Wednesday.
India’s crude oil demand and refining capacity is sizable as the world’s third-largest oil consumer and importer.
The largest share of India’s crude oil is sourced from the Middle East, mainly from Iraq.
Oil Price.com / ABC Flash Point Oil News 2020.