GAIL JV to build petrochemical plant in Assam

Shirish Nadkarni
OGJ Correspondent

MUMBAI, Oct. 24 -- India's state-owned GAIL India Ltd. is the lead promoter of a $1.2 billion integrated petrochemical complex in India to be built in Lepetkata district in Dibrugarh, Assam.

The complex will contain a gas separation plant, hydrocracker unit, and downstream polymer and integrated offsite utilities and plants. It will have a capacity of 220,000 tonnes/year of ethylene and 60,000 tonnes/year of propylene.

GAIL will hold 70% equity in the project, and the remaining 30% will be shared among three other partners: Oil India Ltd. (OIL), Numaligarh Refinery Ltd. (NRL), and the Assam state government.

The project will be completed in 60 months from the date of financial closure. The Assam state government has selected the site, and participants have obtained necessary environmental clearance.

OIL will provide 6 million standard cu m/day of gas as feedstock for the complex, and Oil & Natural Gas Corp. will provide 1.35 million standard cu m/day until Mar. 31, 2012, and reduce it to 1 million standard cu m/day thereafter. The complex also will utilize 160,000 tonnes/year of petrochemical-grade naphtha from NRL.

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