India’s GAIL to double polymer capacity at Pata complex

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)

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By: Priya Jestin

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