25 February 2008 17:54 [Source: ICIS news]
The company’s board decided to delete dedicated 300,000 tonnes/year high density polyethylene (HDPE) and 140,000 tonnes/year styrene butadiene rubber (SBR) from the project configuration “in view of current market demand-supply dynamics”.
The release did not indicate what it would do with the resulting surplus intermediates for the two downstream products.
The project’s other downstream units are two swing plants with aggregate capacity of 720,000 tonnes/year of HDPE or linear low density PE (LLDPE) and one 340,000 tonne/year polypropylene plant.
The reconfiguration has reduced cost to Indian rupees (Rs) 124.4bn ($3.1bn) from Rs135.4bn on the project, which is slated for completion by February 2012.
ONGC is implemented the project through a joint venture named ONGC Petro-additions Limited (OPaL). The former is investing Rs9.7bn in the equity capital of the latter, accounting for 26% stake.
Gujarat State Petroleum Corporation (GSPC) has 5% in the JV and the balance of 69% is to be offered to strategic investors and financial institutions during the course of project execution.
($1 = Rs39.97)
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