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GAIL plans to import petrochemicals from Middle East
Thursday, 06 May 2004, 19:30 IST
NEW DELHI: In its plans to boost the capacity of its petrochemical unit in Uttar Pradesh, gas infrastructure major GAIL (India) Ltd. is also studying the possibility of importing petrochemicals from Qatar, Iran and Egypt.
The growing demand for petrochemical products in the country has led GAIL to explore possibilities of either sourcing or even entering into joint ventures for manufacturing in oil and gas rich countries of the Middle East.
"We are looking at setting up grassroots gas cracker plants in Egypt and Iran and also talking to Qatar Petrochemical Company (QAPCO) for imports of petrochemical products," Prashanto Banerjee, chairman and managing director of GAIL said here Wednesday.
Addressing an annual press meet, Banerjee said GAIL has already de-bottlenecked its petrochemical plant in Pata, Uttar Pradesh, with an investment of 
670 million to raise polyethylene production capacity from 160,000 tonnes per annum to 210,000 tonnes.
De-bottlenecking of its high-density polyethylene (HDPE) plant is also being undertaken to raise capacity from 100,000 tonnes to 120,000 tonnes per annum. The company board has approved 6.47 billion for expansion of its ethylene capacity from 300,000 tonnes of 440,000 tonnes by April 2006.
"Expansion of polymer supply will be made for one million tonnes in five years through equity stake, imports and foreign investment," said Banerjee.
Within the country, GAIL is planning to add gas cracker units in the northeast and in Kerala.
During 2003-04, GAIL recorded a 14.6 percent rise in net profit from 16.39 billion in the previous year to 18.78 billion.
Looking at maintaining 14.5 percent growth in 2004-05, GAIL is in the process of further enhancing its overseas portfolio while stepping up activities in the country.
"As part of the entry strategy for globalisation initiative, GAIL has taken equity stake in Fayum Gas and Shell CNG in Egypt and also received the first dividend for 2003-04 from Fayum Gas. GAIL is also exploring opportunities in NatGas and Nile Valley Corporation in Egypt," said Banerjee.
In Shell CNG, a city gas company, GAIL has invested $0.153 million to take 22 percent equity stake while in Fayum Gas, a 19 percent stake has been acquired with an investment of $2.53 million.
During 2003-04, GAIL received $0.2 million dividend from Fayum Gas.
India's gas major is in advanced stages of negotiations with Egypt Kuwait Holding Co and Dutch energy major Shell to buy 22 percent stake in NatGas.
"Under a memorandum of understanding with NatGas, we can only negotiate with Nile Valley Corporation in Egypt after finalising the deal with them. In Nile Valley, British Gas is seeking to offload its 43 percent stake," said a senior GAIL official.
GAIL has formed a consortium with Tata Power and British Petroleum to jointly bid for the five million tonnes capacity LNG terminal of Dabhol Power Project -- which has been in limbo for over two years with lenders to the project still to decide how to get it restarted.
The acquisition of the Dabhol terminal would help GAIL finalise plans about where to have the regassification facility for the five million tonnes per annum LNG it is planning to import from Iran from 2007.
Source: IANS
670 million to raise polyethylene production capacity from 160,000 tonnes per annum to 210,000 tonnes.
De-bottlenecking of its high-density polyethylene (HDPE) plant is also being undertaken to raise capacity from 100,000 tonnes to 120,000 tonnes per annum. The company board has approved 6.47 billion for expansion of its ethylene capacity from 300,000 tonnes of 440,000 tonnes by April 2006.
"Expansion of polymer supply will be made for one million tonnes in five years through equity stake, imports and foreign investment," said Banerjee.
Within the country, GAIL is planning to add gas cracker units in the northeast and in Kerala.
During 2003-04, GAIL recorded a 14.6 percent rise in net profit from 16.39 billion in the previous year to 18.78 billion.
Looking at maintaining 14.5 percent growth in 2004-05, GAIL is in the process of further enhancing its overseas portfolio while stepping up activities in the country.
"As part of the entry strategy for globalisation initiative, GAIL has taken equity stake in Fayum Gas and Shell CNG in Egypt and also received the first dividend for 2003-04 from Fayum Gas. GAIL is also exploring opportunities in NatGas and Nile Valley Corporation in Egypt," said Banerjee.
In Shell CNG, a city gas company, GAIL has invested $0.153 million to take 22 percent equity stake while in Fayum Gas, a 19 percent stake has been acquired with an investment of $2.53 million.
During 2003-04, GAIL received $0.2 million dividend from Fayum Gas.
India's gas major is in advanced stages of negotiations with Egypt Kuwait Holding Co and Dutch energy major Shell to buy 22 percent stake in NatGas.
"Under a memorandum of understanding with NatGas, we can only negotiate with Nile Valley Corporation in Egypt after finalising the deal with them. In Nile Valley, British Gas is seeking to offload its 43 percent stake," said a senior GAIL official.
GAIL has formed a consortium with Tata Power and British Petroleum to jointly bid for the five million tonnes capacity LNG terminal of Dabhol Power Project -- which has been in limbo for over two years with lenders to the project still to decide how to get it restarted.
The acquisition of the Dabhol terminal would help GAIL finalise plans about where to have the regassification facility for the five million tonnes per annum LNG it is planning to import from Iran from 2007.
Source: IANS