Gail India Ltd

Gail India Ltd has announced that the Feedstock Supply Agreements for the Rs 5460 crore, 2,80,000 TPA gas cracker plant being set up at Lepetkata, Dibrugarh, Assam were signed in Dibrugarh on September 19, 2007. The Gas Supply Agreement was signed between Brahmaputra Cracker and Polymer Ltd (BCPL), and Oil India Ltd and Naphtha Supply Agreement was signed between BCPL and Numaligarh Refineries Ltd (NRL). The Feedstock Supply Agreements were signed by Shri R K Kashyap, Chief Operating Officer, BCPL, Shri N M Bora, Director (Operations), OIL and Shri D Chakraborty, Director (Technical), NRL in the presence of Shri B K Handique, Hon'ble Union Minister of State for Chemicals, Shri Prithibi Majhi, Hon'ble Minister for Planning & Development, Government of Assam, and Dr. U D Choubey, CMD of the Company and Chairman, BCPL. Other dignitaries present on the occasion were Shri S Sonowal, Principal Secretary to the Government of Assam, Shri M R Pasrija, Chairman and Managing Director, OIL, Shri A K Purwaha, Director (Business Development) of the Company, Shri R K Graver, Director (Projects), EIL and Shri S. Bhujbal, Director, Ministry of Chemicals and Fertilizer, Government of India along with other senior officials of the respective companies and the State Government.

The signing of Feedstock Supply Agreements is a major milestone in the execution of the project. Government of Assam has handed over 890 acres of land for the project and BCPL has acquired necessary Environmental and Pollution clearances.

Speaking on the occasion, Dr. U D Choubey, CMD of the Company and Chairman, BCPL said that the Company was committed to ensure project success and pre-project activities have already been initiated. The most recent development has been the appointment of Engineers India Limited (EIL) as the Project Management Consultant (PMC) for the project, he added.

Under the Feedstock Supply Agreements, BCPL will source 6.0 MMSCMD gas from Oil India Ltd (OIL) Duliajan which shall be processed to recover C2+ Liquid as feedstock for the Petrochemical Complex. The balance gas after recovery of C2+ Liquid shall be returned back to the gas consumers. The Petrochemical Complex shall also utilize 160,000 TPA of petrochemical grade Naphtha from Numaligarh Refinery Limited (NRL). In addition to fuel supplies from OIL and NRL, 1.35 MMSCMD gas from Oil & Natural Gas Corporation Ltd (ONGCL) upto March 31, 2012 and 1.00 MMSCMD thereafter will be utilized by BCPL.

The petrochemical complex will comprise of a cracker unit, downstream polymer and integrated off-site / utilities plants. The complex has been configured with a capacity of 220,000 tons per annum (TPA) of Ethylene and 60,000 tons per annum of propylene with Natural Gas and Naphtha as feed stock.

The existing LPG plant of the Company at Lakwa will be modified to process gas for recovery of ethane and higher hydrocarbon fraction which will be transported to Lepetkata through a pipeline.

The Products from the Petrochemical Complex shall be 220,000 Tons per annum (TPA) of HDPE / LLDPE, 60000 TPA of Polypropylene, 55000 TPA of Raw Pyrolysis Gasoline and 12,500 TPA of Fuel oil.

Brahmaputra Gas Cracker and Polymer Ltd is a Joint Venture Company with the Company as the lead promoter with 70% equity. The other Joint Venture partners are OIL, NRL and Assam Government, each having 10% equity.