State-run GAIL (India) Ltd and Reliance Industries Ltd have joined hands to set up a multi-billion dollar petrochemical plant in gas-rich Middle-East, Central Asia or Russia.
According to the chairman and managing director GAIL, the JV petrochemical plant will be a mega size one with a capacity of around 2 million tonne. A memorandum of understanding (MoU) in this regard was signed by RIL executive director Nikhil R Meswani and GAIL director (Business Development) AK Purwaha. The agreement was exchanged by Choubey and RIL chairman and managing director Mukesh Ambani.
Choubey said that RIL and GAIL will also jointly study opportunities in Russia, Qatar, Saudi Arabia, UAE, Algeria, Nigeria and former Soviet republics for the petrochemical complex.
?We have formed a joint working group to select sites in three countries by March. We may also jointly take up integrated project involving production of feedstock and then converting it into value added products,? he said
As per Choubey, the project details, cost, financing and equity will be decided once sites are selected and feasibility report commissioned. ?All I can tell you is that it will be a mega petrochemical plant, potentially costing billions of dollars.? He did indicate that the two firms were in all likelihood forge an equal partnership.
Natural gas or naphtha are likely to be the feedstock for the plant and the two companies, if allocated a gas field in the target countries, will look at jointly developing it and converting the gas into petrochemicals.