GAIL dismisses Pata feedstock scare

Vol 16, PW 23 (13 Jun 13) News in Brief

GAIL has dismissed concerns that it will face a feedstock shortage when capacity at its Pata petrochemicals factory in Uttar Pradesh is doubled to 900,000 t/y by March 2014.

GAIL currently uses 12m cm/d of ONGC Bassein gas at Pata to extract C2, C3 and C4 for use as petrochemicals feedstock. Another 18m cm/d Bassein gas is sourced from Vijaipur where it extracts C3 and C4 for LPG.

After the proposed expansion, GAIL plans to extract C2 at Vijaipur from ONGC’s Bassein gas for Pata. “There will be no feedstock shortage,” we are told.

“We have agreements with ONGC for this gas.” After the Rs8000cr ($1.6bn) expansion, Pata will produce 60% high density polyethylene and 40% linear low density polyethylene.

Imports of these products account for 23% of domestic consumption. Reliance supplies 30%, IndianOil and Haldia Petrochemicals each supply 15% and GAIL supplies 17%.

Increased production should reduce import dependence.

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