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Mony K. Mathew

Thiruvananthapuram , Aug 5

THE public sector Gas Authority of India Ltd will conduct a fresh feasibility study on the proposed petrochemical complex at Cheemeni in Kasargod district of Kerala.

The project, estimated to cost around Rs 7,000 crore, is the centrepiece of the gas cooperation agreement that GAIL signed with the Kerala State Industrial Development Corporation (KSIDC) last month. The agreement envisages a total investment of Rs 10,450 crore by the central public sector in Kerala.

KSIDC, which holds a letter of intent for the establishment of a petrochemical complex, had got a feasibility study done in 2001 by Engineers India Ltd (EIL). The study proposed the setting up of a naphtha cracker for production of ethylene, polypropylene, benzene and LDPE, among other things.

The study had projected significant demand-supply gap for the products after 2007-08. Besides, a detailed market survey conducted by the Industrial Development Services of Delhi based on end-use method had established the scope of the project.

However, GAIL India has decided to go in for a fresh feasibility study and it is in the process of finalising a consultant to conduct it, according to sources in KSIDC. A change in the product mix was also on the cards based on the study, they said.

GAIL is looking at the possibility of setting up a facility for use of both naphtha and natural gas with a total capacity of eight lakh tonnes. This is in view of the gas pipeline that it plans to put in place from the proposed LNG terminal at Kochi to Mangalore that will pass through the vicinity of the project.

As for naphtha, the proposal is to construct a jetty for its import and this is considered a hassle-free proposition as the seacoast is just 20 km away from the project site.

More Stories on : New Projects | Petroleum | Kerala

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