State-owned refiner Hindustan Petroleum Corp Ltd (HPCL) and gas utility GAIL India Ltd is looking at jointly setting up a multi-billion dollar petrochemical plant in Andhra Pradesh. They are exploring the possibility of a petrochem project after their plans to team up with France's Total, Lakshmi N Mittal Group and Oil India Ltd (OIL) for 15 million tons a year refinery-cum-petrochemical plant at Visakhapatnam in Andhra Pradesh fell through.
"That project fell as partners pulled out one after the other due to weak global demand," a top official said. "Now, HPCL and GAIL are looking at setting up a petrochemical plant at the Petroleum, Chemical and Petrochemicals Investment Region (PCPIR) sites identified by the state government." GAIL, the official said, is taking a lead in doing the feasibility studies as well as site selections. Cost, capacity and equity structure of the project will be decided after the studies are completed.
GAIL is taking a lead in the project as it has expertise in building and operating a gas-based petrochemical plant, the official said. HPCL owns a 6.5 million ton refinery at Mumbai and a 8.3 million ton unit at Vizag. While the Vizag plant is being expanded to 15 million tons, HPCL is also setting up a 9 million tons refinery at Barmer in Rajasthan at the cost of Rs 373.20 billion.