GAIL eyes Qatar petrochem project
The state-run gas transmission utility explores the possibility of setting up a mega-integrated petrochemical complex in Qatar, reports Deepak Joshi.business Updated: Nov 12, 2007 23:01 IST
State-run gas transmission utility GAIL (India) is exploring the possibility of setting up a mega-integrated petrochemical complex in Qatar under the public-private partnership (PPP) model in a joint venture with Qatar Petrochemical Company (QAPCO).
QAPCO is currently working out the broad contours of a project to set up a mega-integrated petrochemical complex of 1.9 million metric tonnes per annum capacity based on ethane feed. It has asked GAIL to submit its interest in the project so that the issue could figure in discussions held by QAPCO'S top management. .
The issue of participating in a mega-integrated petrochemical complex figured earlier this month in a meeting that GAIL Chairman and MD U.D. Choubey had with QAPCO officials in Doha, Qatar.
During the meeting, it was emphasised that GAIL is willing to join hands with QAPCO for the project on the PPP model. GAIL also expressed its keeness about partnering a leading private petrochemical player and offer an effective proposal for QAPCO’s consideration.
Choubey underlined GAIL’s competency in various activities in the petrochemicals business, including project execution, operation and marketing. GAIL has an existing petrochemical plant at Pata, while the Brahmaputra Cracker and Polymer plant is being constructed in Assam.
GAIL has chalked out a capital expenditure plan of Rs 2,744 crore during the current financial year that would be made in pipeline projects, oil and gas exploration and expansion of petrochemical plant. Of the total capex plan, the company plans to invest Rs 1,855 crore in pipeline projects, Rs 500 crore in E&P projects, Rs 146 crore in petrochemicals, Rs 94 crore in business development, and the rest would go to projects related to city gas, telecom, and coal gasification. Last month, QAPCO inaugurated the first cargo of its ethylene expansion project to Finolex Industries.