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Gail India to convert LPG plant to supply petrochemicals feedstocks in Assam

30th January 2015

Gail India has announced that its LPG recovery plant at Lakwa, Assam would be converted to supply feedstock for the petrochemical unit of Brahmaputra Cracker and Polymer Limited (BCPL) being set up at Lepetkata near Dibrugarh

Gail India has announced that its LPG recovery plant at Lakwa, Assam would be converted to supply feedstock for the petrochemical unit of Brahmaputra Cracker and Polymer Limited (BCPL) being set up at Lepetkata near Dibrugarh
To make the project viable, gas available in and around Lakwa region is also being considered for making available as feedstock to BCPL

Denying media reports that the plant was being shut down, Gail said there is no such plan and the plant was only being converted to supply feedstock to the petrochemical unit and would continue to function under BCPL.

Towards accomplishment of the Assam Accord, the government of India had entrusted Gail the responsibility of setting up the petrochemical plant which is coming up near Dibrugarh at a cost of approximately USD 1.44bn (RS 8,920 Crores).

The project is being executed by BCPL which is a joint venture company of Gail, Oil India Limited (OIL), Numaligarh Refinery Limited (NRL) and the government of Assam.

Gail is the majority stakeholder in the project.

BCPL is in the process of commissioning the petrochemical plant and to make it operational and viable, supply of natural gas from OIL, Oil and Natural Gas Corporation Limited (ONGC) and Naphtha from NRL has been arranged for feed stock.

To make the project viable, gas available in and around Lakwa region is also being considered for making available as feedstock to BCPL.

Since gas available at Lakwa was to be processed for producing C2+ feed, economics were worked out for transporting natural gas vis-a-vis C2+ feed through pipeline from Lakwa to BCPL at Lepetkata with respect to the capital cost and it was found that transportation of C2+ feed is economical. C2+ is the hydrocarbon needed for production of polyethylene.

Hence, it was decided in the larger interest of the project to convert the existing LPG plant to C2+ recovery unit for BCPL. More facilities in term of Gas Sweetening Unit, DM Water plant, Boiler, enhanced nitrogen plant, air plant are being set up in the existing premises at Lakwa to convert the LPG plant into C2+ recovery unit.

It is also clarified that as Lakwa plant will continue to operate with change in product, requirement of majority of contract workers will still exist and contractors will be persuaded to continue with the workers as and when any change in contract takes place.

With respect to apprehension that there would be shortfall in the supply of LPG to Assam and the North East region, it may be mentioned that Gailhad informed Indian Oil Corporation Limited (IOCL) at the beginning of project about the conversion of Gail'sLPG plant into C2+ recovery unit by BCPL. IOCL on behalf of the Ministry of the Petroleum and Natural Gas is taking necessary action to ensure that there is no shortage in supply of LPG in the state.

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