OPaL scouts for long-term LNG supply contract

Vol 20, PW 13 (23 Mar 17) Midstream & Downstream

ONGC Petro additions (OPaL) is believed to be in talks with GAIL, GSPC, IndianOil and Shell to secure long-term LNG for its newly-commissioned Dahej petrochemicals complex.

This report learns OPaL is looking for a R-LNG contract that runs for five to seven years or longer. OPaL's complex was inaugurated on March 7 by Narendra Modi but commissioned in January.

Over 13 to 14 months before than the complex was using spot LNG imports for pre-commissioning. "We float a limited tender every month to source gas," OPaL CEO K.

Satyanarayana tells us. But he explains spot imports place too much pressure on the buyer to constantly scour the market.

"We'd prefer a long-term partner (supplier) who takes responsibility for all our gas needs," adds Satyanarayana. OPaL prefers dealing with fellow state-owned companies GAIL, GSPC, and IOC who account for most of OPaL's spot supplies, he adds.

OPaL consumes 4.26m cm/d R-LNG feedstock for its petrochemicals plant and another 1.2m cm/d for a 195-MW gas-fired power station. Total production capacity is 1.4m t/y polymers (LDPE, HDPE and polypropylene) and 500,000 t/y of benzene, butadiene and pyrolysis gasoline.

"The plant is today at half capacity," adds Satyanarayana. "Capacity will be ramped up in the next 120 days." Asked if OPaL would eat into market leader Reliance's share, Satyanarayana shot back: "Nobody needs to eat into anybody's share.

The market for polymers in India is huge."

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