ONGC and Torrent sign MOU to develop power project for Dahej SEZ

16-May-08

Oil and Natural Gas Corporation (ONGC) has signed an MoU with Torrent Energy Ltd. to develop a dedicated power project to supply electricity to the Dahej SEZ in Gujarat. Torrent will install gas-fired capacity of 1500 MW in phases, starting with a capacity of 300 MW in the first phase, to be commissioned by 2011-12. ONGC is co-developing the SEZ through a special purpose vehicle, OPaL (ONGC Petro-additions Ltd), in which it holds 26% stake. ONGC's plans commence with a petrochemicals complex to process LNG (liquefied natural gas), being imported by Petronet LNG Ltd, for extracting C2-C3 (ethane, propane) - forming the basic feedstock for the petrochemicals complex to be built through an SPV. The turnkey contract for the C2-C3 extraction project has been awarded to Toyo Engineering. Project management consultant for the project is the UK-based Foster Wheeler Energy Ltd. The petrochemicals complex will be commissioned around mid-2010, and will comprise of 1.1 mln tpa of ethylene capacity dual feed cracker, with associated units and polymer plants, to manufacture HDPE, LLDPE, PP and Styrene Butadiene Rubber.