ONGC Petro-additions Limited (OPAL), a joint venture company promoted by Oil and Natural Gas Corporation Limited (ONGC) with 26% equity, and Gujarat State Petroleum Corporation Limited (GSPC), is implementing a mega petrochemicals project in the Special Economic Zone at Dahej, Gujarat.

The single largest component of this mega project is a Dual feed Cracker to produce 1,100 KTPA of Ethylene and 340 KTPA of Propylene. To implement this Dual feed Cracker and associated units, on LSTK basis, OPAL has awarded contract to the consortium of M/s Linde AG, Germany and M/s Samsung Engineering Ltd. Seoul, Korea on 23rd December 2008. The contract, amounting to USD 1.4 Billion, has been finalized against International Competitive Bidding, and is expected to boost the investment sentiment in the current depressed market.

The award of the contract, in the present challenging business environment, is proof of ONGC’s determination to steer this project of national importance to successful commissioning by December 2012. The in-house feed stock for the project would be Naphtha streams from ONGC’s Hazira and Uran land processing plants and C2-C3 from Dahej Plant.

The attractiveness of the project is vindicated by the fact that major petrochemicals and financial sector players have shown keen interest in the project and formalities for induction of other equity partners are nearing completion.

Tags: ONGC