P-LNG begins work on Dahej petchem complex
Petronet-LNG is moving ahead with its plan to set up a petrochemicals complex at Dahej, hiring Engineers India (EIL) as its project consultant.
"Work has begun," confirmed Petronet-LNG finance director VK Mishra during an investors meeting on October 24 (2024), made public on the company website through an audio recording. "We've appointed the PMC contractor and signed contracts with technology providers."
Both EIL and the technology providers have begun work. "Our PMC is undertaking all the activities," added Mishra.
"They are preparing the details of each EPC contract and preparing tenders; since it's a huge lineup of contracts, the EPC work awards will take time." Petronet-LNG hired EIL in June 2024 on a nomination basis without a tender.
"Since early September (20224), EIL has been issuing notifications for pre-tender meetings of separate packages," says an industry source. "It was quite shocking that Petronet-LNG awarded the PMC contract (to EIL) without a tender for such a large project; everything was done hush-hush; nobody in the industry knows the contract price."
What is known is that Lummus won the technology contract for the Polypropylene (PP) project in August 2024. Honeywell UOP will provide technology for Propane Dehydrogenation (PDH).
Petronet-LNG, meanwhile, is talking to banks for funds to finance the project. "Our plan is a 70:30 debt-to-equity ratio," said Mishra at the October 24 meeting.
"This will be finalised soon." Petronet-LNG plans to invest Rs20,685cr ($2.49bn) in the petchem complex.
On March 12 (2024), Narendra Modi laid the foundation stone through an online video call during his visit to Ahmedabad. Days earlier, on February 29 (2024), the environment ministry's Expert Appraisal Committee (EAC) recommended clearance.
Petronet-LNG wants a 750,000-t/y PDH and a 500,000-t/y PP facility. "Associated facilities such as utility plants, power plants, storage tanks, associated pipelines and dispatch terminal will be installed in line with the above process capacities," writes Petronet-LNG in its environmental clearance application.
On the product slate are polypropylene, propylene, propane, hydrogen and ethane. Expect close to 2000 people on-site during project construction.