BCPL expects rise in Assam cracker project costs due to delay

19 July 2010 12:09  [Source: ICIS news]

MUMBAI (ICIS news)--Brahmaputra Cracker and Polymer Ltd (BCPL) expects to see a 15-20% increase in the costs of its gas cracker project in Dibrugarh, in India's Assam state, due to delays, a source close to the project said on Monday.

The Rs54.6bn ($1.17bn) project, which had been scheduled for completion by April 2012, is running six months behind schedule, the source said. 

The non-availability of skilled workers was one of the main reasons for the delay, the source said, adding that BCPL would require around 16,000 skilled workers by January 2011 to start construction on the cracker and derivative units.

The company has already obtained environmental clearances for the project, and most of the purchase orders and contracts have been placed, the source said.

Feedstock gas for the cracker would come from Oil India Ltd (OIL) and Oil and Natural Gas Corp (ONGC), while its naphtha feedstock would be provided by Numaligarh Refinery Ltd (NRL), the source added. 

The multi-feed cracker would have the capacity to produce 220,000 tonnes/year of ethylene, 60,000 tonnes/year of propylene, 56,750 tonnes/year of pyrolysis gasoline and 12,500 tonnes/year of fuel oil, according to the source.

Derivative units would include a 220,000 tonne/year swing linear low density polyethylene (LLDPE)/high density polyethylene (HDPE) plant and a 60,000 tonne/year polypropylene (PP) unit.

BCPL is 70%-owned by GAIL (India), with the remaining 30% held by NRL, OIL and the Assam government.

($1 = Rs46.70)

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By: Priya Jestin

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