Qatar may pick up stake in Gail's Kochi Petrochemical project

13-May-05

The Kerala State Industrial Development Corporation (KSIDC) is expected to showcase Gail's Kochi Petrochemical project to a visiting high level delegation from Qatar. Will this presentation build an interest in the project by the Qatari government to pick up a strategic stake in public sector Gail's proposed Rs 7,600 crore, gas fired petrochemical project? Since Petronet is setting up a 2.5 MMTPA LNG import terminal and regassification plant in Kochi, with Gas sourced from Qatar's Ras Gas, it is only logical that the state government offer a strategic stake in the venture to Qatar. Gail was originally planning to set up the project in Kasargode in northern Kerala. The project will produce polyethylene and propylene - the demand for which is expected to go up in the coming years. Gail has shelved the naphtha fired project and shifted the petrochem project to Kochi for proximity to LNG feedstock. Gail currently has a gas-based petrochemicals complex at Pata near Delhi which has a ethylene capacity of 300,000 tpa and polyethylene capacity of 260,000 tpa.