India’s gas major GAIL India has revived plans to set up an integrated refinery-cum-petrochem plant by forming a consortium of Indian companies. GAIL is in talks with oil and petrochem majors from the public and private sector to explore possibility of cooperation. Talks are underway with companies such as ONGC, Oil India, HPCL, Reliance Industries and Essar Oil to explore the option of establishing a special purpose vehicle (SPV) to develop an integrated refinery and petrochemicals plant in India and explore opportunities for investment in gas rich countries like Iran and Russia to set up petrochem facilities.
GAIL’s planned foray into refinery business came to an abrupt end in H2-2008 when Mittal Energy decided to withdraw from a proposed US$10 bln refinery-cum-petrochem project in Vizag, followed by the exit of French oil major Total. The export-oriented complex was proposed to house a refinery with a capacity of 14-15 mln tpa and a petrochemicals plant with a capacity of 1 mln tons.