05 May 2009 11:29 [Source: ICIS news]
NEW DELHI (ICIS news)--GAIL (India) has proposed to set up a styrene butadiene rubber (SBR) unit at Dahej, in Gujarat state, with Oil and Natural Gas Corp (ONGC) as part of their joint venture ONGC Petro-additions Ltd (OPaL), a source from GAIL said on Tuesday.
The SBR unit would form part of the venture's multi-feed petrochemical complex at Dahej, the source said, which would begin commercial production in October 2012.
Although ONGC has agreed in principle to GAIL’s proposal, the latter wanted a formal confirmation on the supply of SBR intermediates as a prerequisite for undertaking a detailed feasibility study on the proposed unit, according to the source.
GAIL had also offered to market polymers to be produced at the complex and provide its expertise in areas such as plant operations and maintenance and staff training. ONGC would discuss these issues after signing the shareholders agreement with GAIL, the source said.
ONGC has a controlling stake of 26% in OPaL. Gujarat State Petroleum Corp (GSPC) has a 5% equity stake in the venture.
ONGC said it wanted GAIL to contribute its 19% equity stake in the venture as an advance against equity pending the allotment of shares.
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