AHMEDABAD: Gas Authority of India Ltd has acquired nine per cent equity stake in a petrochemical plant project of ONGC Petro additions Ltd, coming up at Dahej in Gujarat, an official of ONGC said on Saturday.

“We have confirmed nine per cent equity stake to GAIL in our project at Dahej and we are considering them for some more stakeholding,” Director In-Charge (BD&JV) A K Balyan said.

GAIL had sought 19 per cent equity in OPaL as it already had a presence in petrochemical business.

Speaking about equity arrangement of this multi-crore project, Balyan said, “With 50 per cent of equity almost being tied up now, we actually have to refuse to lot of overseas companies who have shown interest in the project.”

“We will take our industry peers and sister concerns first who have prior experience in this field, and then others,” Balyan said.

“We have kept 25 per cent for public offering, but that will come little later on premium when the project takes some shape and is visible on ground,” he added.

“Commissioning of the project is largely dependant on the setting up of cracker unit,” Balyan said.

OPaL will use C2-C3 (ethane and propane) compounds extracted from imported liquefied natural gas (LNG) to make polymers at the proposed plant.

source: Economictimes

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