Gail-IOC sign MoU for petrochemicals
PM News Bureau
Gail (India) Ltd and Indian Oil Corporation Ltd have signed
an MoU for cooperation in the area of petrochemicals. The proposed joint venture
company will explore the possibility of setting up a cracker complex, including
downstream derivatives, at Barauni in Begusarai district of Bihar. The project
is being set up with an eye on the growing market for polymers in India.
A joint working committee consisting of two representatives from each company
will be formed to undertake the techno-economic feasibility study of the
project, including feedstock (naphtha and natural gas) management.
Gail will assess the prospect of natural gas availability from the Krishna-Godavari
basin, including the potentiality of rich gas to be used as part of the
feedstock for the project and work out the modality for distribution of the same
from KG basin to the project site.
Indian Oil will assess the prospect of availability of off-gas and naphtha not
only from its Barauni refinery but also from its other operating refineries, to
be used as the predominant feedstock for the project, and work out the modality
for positioning the same to the project location.
Gail and Indian Oil will subsequently develop appropriate agreements for supply
of the gas to the JV after it is formed.
[November 03-09, 2008]