ONGC opens bidding for Rs136bn olefins facility

17 May 2007 08:58  [Source: ICIS news]

NEW DELHI (ICIS news)--India’s Oil and Natural Gas Corporation (ONGC) intends to award a rupees (Rs) 136bn ($3.3bn) turnkey contract for the setting up of a dual-feed olefins complex in Dahej, Gujarat state, a company spokesman said on Thursday.

 

The consortium that won the assignment – to be awarded by 20 January 2008 - would have to complete the project within 40 months, he told ICIS news.

 

ONGC has organised a conference for prospective bidders on 8 June in Mumbai. The last date for the submission of tenders would be 24 August.

 

The selected bidder will have to obtain statutory approval for the project, undertake engineering, the procurement of equipment and construction of the entire complex and infrastructure.

 

The cracker will have the capacity to produce 1.1m tonnes of ethylene a year; 340,000 tonnes/year of propylene; 225,000 tonnes/year of butadiene; 135,000 tonnes/year of benzene; 35,000 tonnes/year of butene-1; 160,000 tonnes/year of styrene;  75,000 tonnes/year of carbon black feedstock; 19,000 tonnes/year of C6 raffinate; and 135,000 tonnes/year of pyrolysis gasoline.

 

Another intermediate capacity of 129,000 tonnes/year of C4 raffinate will be used for the setting up a C4 hydrogenation unit at a later date.

 

The downstream product slate will be: 140,000 tonnes/year of styrene butadiene rubber (SBR); 300,000 tonnes/year of high density polyethylene (HDPE); 720,000 tonnes/year of HDPE/linear low density polyethylene (LLDPE) comprising two swing units; and 340,000 tonnes/year of polypropylene (PP).

 

According to tender documents, the project layout would be conceived to facilitate the setting up of “a future polymers line parallel to the polyethylene/polypropylene units”.

 

The complex will be sited next to Indian Petrochemicals Corporation’s existing facility which could lead to operational integration between the two, said an industry source.

 

The project will be implemented by an ONGC joint venture ONGC Petro-additions Limited (OPaL), the other partner being Gujarat State Petroleum Corporation (GSPC).

 

($1 = Rs40.83)

 

By: Naresh Minocha
+65 6780 4359

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