GAIL, RIl to select site for petrochem plant

State-run GAIL India and Reliance Industries will select site from a list of 10 countries, including Qatar, Australia and Russia, for setting up a multi-billion-dollar mega petrochemical plant.

"We had identified 10 countries for setting up the mega petrochemical plant. A working group (of GAIL and RIL) will shortlist three of the identified countries. We may then narrow on one or two for setting up of the mega petrochemical plant," GAIL Chairman and Managing Director U D Choubey told reporters.

He, however, refused to name the 10 countries identified for the purpose.

Industry sources said the MoU signed by RIL and GAIL on December 4, 2007, lists Qatar, Abu Dhabi, Bahrain, Vietnam, Australia, South Africa, Angola, Mexico, Russia and Former Soviet Union countries as areas where the two would explore the possibilities of jointly establishing the up to 2 million tons chemical plant.

"RIL and GAIL believe that there is a huge demand for petrochemical products worldwide. This would need new capacities and therefore, provide opportunity of setting up global size petrochemical complexes, preferably gas-based, in gas- rich countries is being explored," he said.

Back home, the two companies would also cooperate in areas of distribution and marketing of petrochemicals, including 'product-swapping'.

Considering the geographical location of market centres for certain grades vis-a-vis the production centres and logistic advantages, the two companies shall consider product swapping for maximising realisation, industry sources said.