A pre-feasibility report (PFR) on the proposed one mln tpa joint venture petrochemical plant between GAIL (India) Ltd. and National Petrochemicals Company (NPC) of Iran has confirmed the economical viability of the project. The PFR was sought through consultant Engineers India Ltd, with inputs from NPC. A project development agreement had been signed between GAIL and NPC in 2005.
GAIL is examining the possibility of setting up the joint venture project based on the results of the PFR. Subsequent to the DFR, the joint venture will be formed. The project is expected be completed in 3-4 years after the joint venture is set up. Initial investment in the project is initially expected to be Rs 7,000-8,000 crore. The proportion of GAIL's investment would depend on the equity structure.
The GAIL-NPC combine would mainly focus on gas cracker. The cracker will manufacture low-density polyethylene, and linear low-density and high-density polyethylene. The proposed location of the complex is South Pars Zone, Assaluyeh (Iran). A major attraction of the project is the low-cost ethane feedstock that will be available from the South Pars gas fields in Iran.
16-Feb-06 
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