Page 66 - Plastics News September 2018

BUSINESS NEWS

Essar signs GSPA with GAIL BPCL to invest Rs 40,000 crore

in new petrochemicals plant
ssar Oil & Gas Exploration & Production Ltd (EOGEPL)
Ehas signed a Gas Sale and Purchase Agreement (GSPA)
with GAIL (Gas Authority of India Limited). The GSPA entails harat Petroleum Corporation Limited (BPCL) is
a 15-year gas supply contract whereby the Company will be Bplanning to set up a Rs 40,000-crore petrochemicals
able to monetise its entire CBM production of 2.3 mmscmd plant at Rasayani in Raigad District of Maharashtra to
from the Raniganj East block at manufacture polypropylene (PP) and polyethylene
a globally competitive price. ,according to a report in Hindu. The company also
Mr Vilas Tawde, MD & CEO of plans to shift its LPG bottling plant, storage facilities
(2*(3/ VDLG ´7KH VLJQLQJ RI WKLV and bitumen plant to Rasayani, 60 km away from its
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and is a major step in our efforts reported couple of
to expand our business. This is fire incidents in the
in line with the Government’s past. The relocation
vision of moving towards a gas-
based economy, thus fuelling would de-risk the
development. Downstream consumers within GAIL’s refinery and reduce
network, such as gas-based industries and households, the movement of LPG
tankers around the
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attained the GSPA milestone, EOGEPL would now be Mumbai city area by 43%. R. Ramachandran,Director
focussing on ramping up production from its existing 5HÀQHULHV %3&/ WROG 7KH +LQGX WKDW WKH 5DVD\DQL SODQW
348 CBM wells and the 150 wells it intends to drill in the ZDV DW SUH LQYHVWPHQW VWDJH ´:H DUH GRLQJ IHDVLELOLW\
future in the block. The Company is also looking at other study. The main project is to have a PP plant and
opportunities in the unconventional space, like shale gas HWK\OHQH FUDFNHU :H SODQ WR KDYH DFUHV RI ODQG RI
exploration, that exist in the EOGEPL portfolio. Earlier last which 250 acres have been acquired from Hindustan
week, the Government of India approved the Simultaneous 2UJDQLFV ,Q WKH ÀUVW VWDJH ZH SODQ WR VHW XS NWSD
([SORLWDWLRQ RI 8QFRQYHQWLRQDO +\GURFDUERQV ZKLFK propylene unit. In the second stage, we are looking
has broadened the scope for foraying into this space in
addition to its existing licenses. EOGEPL has appointed IRU PWSD IRU SRO\HWK\OHQH µ KH VDLG %3&/ &0' '
international consultants to study its assets and is keen 5DMNXPDU VDLG ´:H SODQ WR LQYHVW XS WR 5V
to go ahead with extensive and structured exploration crore in a phased manner. The matter will be taken
to development programmes across these assets. It is XS E\ WKH ERDUG :H KDYH JRQH WR ERDUG DQG WDNHQ
especially upbeat about the vast shale potential in the approval for petchem strategy. Our petchem strategy
Raniganj East CBM block. EOGEPL has already invested LV IUR]HQ $OO 20&V DUH PRYLQJ WRZDUGV SHWFKHP µ%3&/
more than Rs 4,000 crore in the Raniganj East CBM block is also planing to build a petrochemical plant at its
towards drilling wells, setting up supply infrastructure, %LQD UHÀQHU\
and laying customer pipelines to Durgapur and nearby
industrial areas. The block has 348 completed CBM
wells, alongside robust gas and water handling capacity. Welset Plast Extrusions
EOGEPL is focussing on production optimisation by drilling
more than 500 wells in line with the block’s FDP (Field HOVHW 3ODVW ([WUXVLRQV 3YW /WG KDV FODULÀHG WKDW LWV
Development Plan). The Raniganj East block is India’s :PVC Compounds being only divested to MCC.
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of more than 1 mmscmd, which will be gradually scaled to with 20% growth in India as well as in Global Markets.
2.3 mmscmd. EOGEPL had invited bids from prospective 2ZQHUVKLS DQG PDQDJHPHQW RI :HOVHW 3ODVW ([WUXVLRQV
EX\HUV RI &%0 JDV EDVHG RQ D JRYHUQPHQW QRWLÀFDWLRQ remain with Mehta Family, Mr. Arvind Mehta as CMD and
dated 11 April 2017, which lays out a policy framework Mr. Paresh Mehta as Director.
for the early monetisation of CBM gas.

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