ONGC seeks partner for Dahej petrochemicals complex

26 Dec '06

1 min read

Oil and Natural Gas Corporation (ONGC), based in Gujarat, is thinking over tying up with another firm in the second phase of its gas processing venture at Dahej. An approximate investment of Rs13,600 crores is required for the project.

International giants, financial organizations and technology providers are keenly interested in ONGC' equity. Main purpose of the venture is to process liquefied natural gas (LNG) to extract elements for manufacturing petrochemicals, as the LNG is imported from Qatar by Petronet LNG Ltd.

To construct a petrochemical complex at Dahej SEZ, company has formed a subsidiary ONGC Petro-additions Ltd (OPaL). Downstream polymer plants and a global scale ethylene cracker are part of this complex, which is to be operational from 2010.

According to HR Director Ashok Balyan, basic feedstock for the complex will be ethane and propane, for which ONGC is setting up a plant to extract C2-C3 from LNG.

He added that Toyo Engineering has bagged contract for the C2-C3 unit which will be ready by mid-2008. After completion of the unit, C2-C3 feedstock will be used to produce polymers. Naphtha will be used as feedstock from ONGC's operational units at Hazira and Uran.

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