Dec 25, 2006

MNCs eye stake in ONGC Dahej project

Japanese corporate giants Mitsui Chemicals and Mitsubishi Chemical Corporation are among a host of global companies eyeing a stake in the Rs 13,600 crore petrochemical complex at Dahej ,Gujarat planned by Oil and Natural Gas Corporation (ONGC).ONGC, which is executing the complex through a special purpose vehicle (SPV), plans to get a strategic partner in the project next year."The project is on track. ONGC, on its own, is constructing a plant to extract C2-C3 (ethane, propane) from liquefied natural gas (LNG) imported by Petronet LNG from Qatar. C2-C3 will form the basic feedstock for the complex to be built through a SPV," A K Balyan, director (business development) of ONGC, said.The turnkey contract for the extraction project has been awarded to Toyo Engineering, which is likely to be completed by May 31, 2008."Till the complex comes up, C2-C3 will be sold to petrochemical firms like Reliance Industries. Once our plant comes up, we will use C2-C3 feedstock to manufacture polymers," he said.Balyan said several companies from Japan and Korea have evinced interest in taking up stake in the plant. "We are at a preliminary stage of discussions with them," he said, but declined to give details or name any of the suitors.

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