November 22, 2008

Ineos and Mitsui in eying stake in Dahej project of ONGC

BS reported that at least a dozen companies, including foreign firms, have expressed interest to pick up a stake in ONGC Petro Additions Limited, ONGC's mega petrochemical complex in Dahej.

Ineos, Mitsubishi Chemicals and Japan's Mitsui Chemicals are among the multinational companies in the fray for a stake in the INR 12,500 crore OPaL, which is considering an equity tie up with Petronet LNG.

ONGC holds a controlling 26% equity share in OPaL, which is evaluating a number of partners and the proportion of the equity tie up will be less than 26%. The upcoming petrochemical complex is an anchor tenant in the upcoming Dahej Special Economic Zone, which is spread over 1,700 hectares.

The petrochemical complex will come up on 500 hectares with a 55 acre ethane and heavier hydrocarbons extraction unit adjacent to it. Over 90% of the work on ONGC's C2+ extraction plant is expected to be commissioned by this year. The unit will act as a feedstock provider to the petrochemical complex.