With natural gas producing countries looking for value-addition to the priced product in their own country, GAIL (India) Ltd plans to set up a natural gas-based LPG cracking plant in Uzbekistan at a cost of around Rs 250 cr.
NEW DELHI: With natural gas producing countries looking for value-addition to the priced product in their own country, GAIL (India) Ltd plans to set up a natural gas-based LPG cracking plant in Uzbekistan at a cost of around Rs 250 cr.
The public sector gas major, along with Uzbekneftegaz (UNG), will be setting up plants for producing 1 lakh tonne of LPG every year in the western part of Uzbekistan. Each LPG plant will take a capital investment of $50-60 million and produce LPG predominantly for the domestic market of Uzbekistan, said a GAIL release.
GAIL and UNG recently entered into a memorandum of cooperation (MoC) for setting up the plants. Under the MoC, the two companies will jointly pursue gas sector projects covering exploration and production, gas processing, production of petrochemicals as well as training.
UNG is the eighth-largest gas producer in the world with a pipeline network of over 13,000 km. As a holding company, UNG has a number of foreign collaborators like Russian gas majors Gazprom and Lukoil, Kellogg, BSI & ABB Lummus Global, Canada-based Nova Chemicals, Japan’s Toyo, Mitsui, Marubeni & Nisho Ivai, French Technip, China’s That-xa & Dunshen and Malysian Petronas.
GAIL and UNG had held preliminary discussions in early March 2006 on these specific project opportunities. Following the MoC, a joint working group will be set up. Detailed discussions on setting up of LPG plants specific project opportunities in E&P in Uzbekistan would be held later this month.
UNG is a state-owned holding company formed in 1998 when the Uzbek government merged nine companies in the oil and gas sector. As a natural gas major, UNG has been responsible for international cooperation in Uzbekistan.
The other key business operations of this company are gas processing, petrochemicals, refining, pipelines and marketing of hydrocarbon products.
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