The Hindu : Business : BCPL signs gas supply pact with ONGC

Online edition of India's National Newspaper
Wednesday, Oct 17, 2007
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Business

BCPL signs gas supply pact with ONGC

Sujay Mehdudia

Centre to contribute
Rs. 3,000 crore
GAIL LPG plant
at Lakwa
to be modified

NEW DELHI: Brahmaputra Cracker and Polymer Limited (BCPL) has signed an agreement with Oil and Natural Gas Corporation for supply of 1.35 mscmd gas to the Rs. 5,460-crore Assam Gas Cracker Project foundation for which was laid by the Prime Minister, Manmohan Singh, in April this year.

The 2.80 lakh tonnes per annum (tpa) gas cracker project is being set up at Lepetkata in Dibrugarh. The agreement is for sourcing 1.35 million standard cubic metres per day (mscmd) of gas from ONGC till March 31, 2012, according to an official release here on Tuesday. The gas would be supplied at rates reached through administered pricing mechanism.

Under the agreement, the existing LPG plant of Gas Authority of India Limited (GAIL) at Lakwa would be modified to process gas for recovering ethane and higher hydrocarbon fraction, which would be transported to Lepetkata through a pipeline.

Of the Rs. 5,460 crore project cost, the Centre would contribute Rs. 3,000 crore in the form of capital and feedstock subsidies, while the balance would be shared among the partners in their equity ratio. The agreement was signed by BCPL Chief Operating Officer, R. K. Kashyap, and ONGC Executive Director and Asset Manager (Assam), J. G. Chaturvedi. BCPL is a joint venture company with GAIL holding 70 per cent equity. Oil India, Numaligarh Refinery and the Assam Government hold 10 per cent each. BCPL last month signed feedstock agreements with Oil India and Numaligarh Refineries for gas and naphtha supply, respectively.

Oil India would provide 6 mscmd of gas, while 1.60 lakh tonnes of naphtha would be sourced from Numaligarh Refinery to the petrochemical complex. Engineers India has been appointed the project management consultancy for the project.

The complex is expected to produce about 2.20 lakh tpa of high-density polyethylene and low-density polyethylene, 60,000 tpa of polypropylene, 55,000 tonnes of raw pyrolysis gasoline and 12,500 tonnes of fuel oil.

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