Pacts for feedstock supply for Assam gas cracker project signed

20-Sep-07

The feedstock supply agreement has been signed for the Assam Gas Cracker Project. The Gas supply agreement was signed between Brahmaputra Cracker and Polymer Limited (BCPL) and Oil India Limited (OIL) and the Naphtha supply agreement was signed between BCPL and Numaligarh Refineries Limited (NRL). This marks a major milestone in the execution of the Rs 5460 crore gas cracker project, being set up at Lepetkota in eastern Assam. The Assam government has handed over 890 acres of land for the project and the BCPL has acquired necessary environmental and pollution clearances. BCPL has awarded the contract of project management consultant to Engineers India Limited (EIL), encompassing the concept to commissioning of the mega project. BCPL is a joint venture company with GAIL as the lead promoter with 70 % equity shares The other joint venture partners are OIL, NRL and Assam Government, each having 10 % equity share. Under the feedstock supply agreements, BCPL will source 6.0 MMSCMD gas from OIL, Duliajan, which shall be processed to recover C2+ Liquid as feedstock for the petrochemicals complex. The complex shall also use 16000 tpa of petrochemical grade naphtha from NRL. Failing to meet the supply requirement, the defaulting stakeholders would be penalized, as per the agreement. BCPL is also likely to sign the agreement for additional gas supply from Oil and Natural Gas Corporation Limited (ONGCL). ONGC has approved to supply 1.35 MMSCMD of gas for the gas cracker, and will shortly sign the feedstock agreement. With the current level of feedstock, the complex is expected to produce approximately 2,60,000 tpa of high density polyethylene and low density polyethylene, and 20,000 tpa of raw pyrolysis gasoline and fuel oil.