October 12, 2008

GAIL signs supply agreement for gas cracker plant in Assam

It is reported that GAIL India has signed the feedstock supply agreements for the INR 5,460 crore gas cracker plant with a capacity of 0.28 million tonnes per annum being set up at Lepetkata in Dibrugarh district of Assam.

The gas supply agreement was signed between Brahmaputra Cracker & Polymer and Oil India and naphtha supply agreement was signed between BCPL and Numaligarh Refineries.

Under the feedstock supply agreements, Brahmaputra Cracker & Polymer will source 6.0 metric million standard cubic metres per day gas from Oil India in Duliajan which shall be processed to recover C2+ liquid as feedstock for the petrochemical complex. The balance gas after recovery of C2+ liquid shall be returned back to the gas consumers. The petrochemical complex shall also utilize 0.16 million tonnes per annum of petrochemical grade naphtha from Numaligarh Refinery. In addition to fuel supplies from OIL and NRL, 1.35 metric million standard cubic metres per day gas from Oil & Natural Gas Corporation upto March 31st 2012 and 1 metric million standard cubic metres per day thereafter will be utilized by BCPL.

The petrochemical complex will comprise of a cracker unit, downstream polymer and integrated off site or utilities plants. The complex has been configured with a capacity of 0.22 million tonnes per annum of ethylene and 60,000 tonnes per annum of propylene with natural gas and naphtha as feed stock. The existing company's LPG plant at Lakwa will be modified to process gas for recovery of ethane and higher hydrocarbon fraction which will be transported to Lepetkata through a pipeline.