Reliance Industries Limted (RIL) and State-run Gas Authority of India Limited (GAIL) are in the process of a massive lookout for jointly setting up a proposed multi-billion-dollar petrochemical plant. Qatar, Abu Dhabi, Bahrain, Vietnam, Australia, South Africa, Angola, Mexico, Russia and CIS (Commonwealth of Independent States) are among the dozen odd venues shortlisted by the partners, who have recently signed a memorandum of understanding (MoU) to jointly set up the project. The plant is slated to be a 2 mln ton chemical plant. Both companies also plan to tie up for distribution and marketing of petrochemicals, including product swapping.
As per the MoU, the two companies have decided to float a special purpose vehicle (SPV) with equal stake to set up the overseas petrochemical plant. However, prior to the formation of the SPV, every opportunity for cooperation would be examined by a working group comprising representatives of both the companies. A three-year deadline has been set for identifying the necessary site as well as commencing work on the project. RIL and GAIL already have an agreement for cooperation in the gas sector.