03 August 2010 14:27 [Source: ICIS news]
MUMBAI (ICIS)--State-owned gas utility company GAIL (India) Ltd plans to double its polymer production capacity at its petrochemicals complex at Pata in Uttar Pradesh state to nearly 900,000 tonnes/year in the next 36 months, a source close to the affairs said on Tuesday.
The expansion project, which would cost around Indian rupees (Rs) 82bn ($1.78bn/€1.35bn) would be financed via bonds and external commercial borrowings, the source said.
GAIL’s gas-based integrated petrochemical complex at Pata consists of two high density polyethylene (HDPE) units with a capacity of 100,000 tonnes/year each and a swing HDPE/ linear low density PE (LLDPE) plant with a capacity of 210,000 tonnes/year.
The source also said the company had decided to push back its plans to set up a mega petrochemicals plant in collaboration with Reliance Industries due to the weak global outlook for petrochemicals.
Reliance and GAIL signed an agreement in December 2007 to jointly set up a 1.9m tonne/year gas-based petrochemical plant and had initially identified 10 countries, including Qatar.
The companies planned to set up a 50:50 joint venture company to run the petrochemical plant.
The company on Monday posted a 35% rise in its first quarter net profit to Rs8.87bn from Rs6.56bn in the year-ago period on increased gas sales, while its turnover rose 18% to Rs70.96bn from Rs60.39.
($1 = Rs46.0, €1= Rs60.6)For more information on PE, visit ICIS chemical intelligence
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|