ONGC to offer surplus C2 from petchems complex

05 March 2008 15:23  [Source: ICIS news]

MUMBAI (ICIS news)--India’s Oil and Natural Gas Corp (ONGC) is offering 300,000 tonnes/year of ethylene for derivative production at Dahej, Gujarat, said a senior company executive

 

The ethylene would be available from ONGC’s planned 1.1m tonne/year cracker project at the same site, said S Ramachandran, head of business development at ONGC, late on Tuesday. The rupees (Rs) 124.4bn ($3.1bn) project is due to be completed in early 2012.

 

“Around 300,000 tonnes/year of ethylene has been earmarked for downstream units. We are talking to companies that can offtake the product,” he added.

ONGC decided last week to drop a 300,000 tonne/year high density polyethylene (HDPE) plant and 140,000 tonne/year styrene butadiene rubber (SBR) plant from the Dahej project configuration.

 

The company was instead looking at building two swing HDPE/linear low density PE (LLDPE) plants with a total capacity of 720,000 tonnes/year, said a second ONGC source.

 

But if ONGC was unable to find a buyer for the balance 300,000 tonnes/year of ethylene, it would set up two HDPE/LLDPE plants with a total capacity of 1.08m tonnes/year, he added.

 

In addition to ethylene, 95,000 tonnes/year of butadiene and 135,000 tonnes/year of benzene would also be available to interested companies from the new facility, said the second source.

 

The cracker and derivatives project is being implemented through a joint venture named ONGC Petro-additions Ltd (Opal).

 

ONGC, which will hold a 26% stake in the company, is looking for a strategic investor to participate in the project.

 

($1 = Rs40.3)


By: Malini Hariharan
+65 6780 4359



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