India’s OPaL to export portion of BD output from Dahej project

08 August 2013 08:16  [Source: ICIS news]

MUMBAI (ICIS)--India’s ONGC Petro-Additions Ltd (OPal) plans to export a portion of its butadiene (BD) output once its cracker is commissioned in the third quarter of next year, a senior company executive said on Thursday.

“We are in the final stages of discussion with Adani Ports & Special Economic Zone for two tanks at Hazira port which will be for the exclusive use of OPal for a period of 14 years,” said Makrand Dixit, head of marketing at the company.

Each tank, which will be constructed by Adani, will have a capacity of 1,500 tonnes and will take around 15 months to build.

OPal will have the capacity to produce 115,000 tonnes/year of BD.  Its 1.1m tonnes/year cracker, at Dahej, Gujarat, is expected to be brought on stream in July 2014.

Hazira port is around 100 kilometres from Dahej.

A portion of the BD output will be placed in the domestic market, which is expected to see a shortfall after Reliance Industries starts up its new plants for polybutadiene rubber (BR) and styrene butadiene rubber (SBR).

“There is huge pull for butadiene,” said Dixit, citing that enquiries are coming in from many prospective local, as well as global, buyers.

But OPal expects to eventually place a large portion of its output to GAIL India – which has a 15.5% stake in the company, and the right of first refusal for the BD produced from the Dahej project.

GAIL is studying a BR project at Dahej. But the project is at a very early stage and would take four to five years to be completed.

By: Malini Hariharan
+65 6780 4359

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