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[Dibrugarh, December 03, 2008]

GAIL (India) Limited

Brahmaputra Cracker and Polymers Limited

Major construction activities start at Assam Gas Cracker Project (BCPL)-Review by
Shri B. K. Handique

Dibrugarh, December 03, 2008:- Brahmaputra Cracker and Polymer Limited achieved another milestone today when work commenced on the construction of Central Control Room for the plant. Shri B.K. Handique, Hon’ble Union Minister of State for Chemicals & Fertilizers and Mines today conducted a symbolic puja for the auspicious beginning of the construction activities of the Central Control Room building and other site activities such as site grading, plant and non plant building, site office, sub station buildings, etc of the upcoming Petrochemical Complex ; in the presence of Shri P.C.Sharma, Chief Secretary to Government of Assam, Shri R. K. Goel, Director (Finance) , GAIL , Shri A.K. Puruwaha, Director (Business Development), GAIL, Shri R.K. Grover, Director (Projects) EIL, Shri R.K. Dutta, Director (BCPL), Shri B.K. Das, MD(NRL), Shri Ashutosh Agnihotri, Deputy Commissioner, Dibrugarh and o ther senior officials from Government of Assam and other JV partners.

Shri B. K. Handique had a detailed review meeting with the senior officials in Circuit House and expressed his satisfaction over the progress of the project. GAIL representatives, Shri R.K. Goel, Director (Finance) and Shri A.K. Purwaha, Director (Business Development) reassured the Hon’ble Minister Shri B.K. Handique that all out efforts are being made to expedite the completion of the project well within the stipulated time and within optimal cost.

The Central Control Room is the heart of the plant and monitors and controls the integrated operations including upstream (gas processing and gas cracking) and downstream (polymer) sections. It will also monitor C2 + Liquid pipeline from Lakwa to Lepetkata, Natural Gas pipeline from Duliajan to Lepetkata and lean gas pipeline from Duliajan to Lepetkata. The Central Control Room will be monitoring the entire pipeline operation through Supervisory Control and Data Acquisition System (SCADA) wherein various parameters of this plant will be monitored and controlled from the Central Control Room.

The work of Barbed wire Fencing commenced in May 2008 and is almost complete. Construction of construction power, site office, non-plant buildings, Administrative building is in progress. He further said that BCPL shall establish gas dehydration and compressor facilities at Duliajan for carrying 6 MMSCMD of natural gas from OIL, Duliajan to Lepetkata plant where C2 plus liquids shall be recovered and the lean gas shall be sent back to OIL, Duliajan for further distribution to gas customers. Twin pipelines shall be laid between Duliajan & Lepetkata.

The Basic Design Engineering Basis for Polypropylene and LLDPE / HDPE Units has been finalized and License Agreements are expected to be completed by end of this year. Route survey for Lakwa – Lepetkata Pipeline has been completed.

Total land measuring 3000 Bighas has been taken-over by BCPL at Lepetkata. Also the land measuring 400 Bighas & 70 Bighas for BCPL & CISF townships respectively has been taken over by BCPL. 45 Bighas of land at Duliajan required for setting up the Compressor station has been identified and 6(1) notification issued\. Local Administration Dibrugarh has assured for Land handing-over this land by December 15, 2008.

BCPL has awarded Project Management Consultancy job to India’s premier engineering Public Sector Company Engineers India Limited (EIL). The work for topographical survey, geotechnical survey and ODC transport study has been completed. Process Design basis has been completed for all units where EIL is the Licensor.

The Licensors for C2+ extraction units, Gas Sweetening units, Gas De-hydration units have been awarded, and basic design & engineering has been completed. The Licensors for all the remaining process units have been selected. The Licensors for LLDPE/HDPE swing unit and Polypropylene unit have been appointed.

GAIL (India) Limited led Joint Venture Company (JVC), Brahmaputra Cracker and Polymer Limited (BCPL) is implementing the Rs. 5460 Crore Assam Gas Cracker Project to set-up an integrated Petrochemical Complex at Lepetkata, District Dibrugarh. The Joint Venture Company (JVC) promoted by GAIL with 70% equity participation and the remaining 30% equity is shared equally among OIL, NRL and Govt. of Assam. The project will be completed in 60 months.

The petrochemical complex will comprise of Ethylene cracker unit, downstream polymer and integrated off-site/utilities plants. The complex has been configured with a capacity of 220,000 tons per annum (TPA) of Ethylene and 60,000 tons per annum of propylene with Natural Gas and Naphtha as feed stock.

The Petrochemical Complex will produce 220,000 Tons per annum (TPA) of HDPE/LLDPE, 60000 TPA of Polypropylene, 55000 TPA of Raw Pyrolysis Gasoline and 12,500 TPA of Fuel oil.

OIL and NRL shall supply 6 MMSCMD of natural gas and 160,000 TPA of naphtha respectively as feedstock to the complex. The balance feedstock requirement of 1.3 MMSCMD of gas up to 2012 and 1 MMSCMD thereafter is considered from ONGC.

Existing C3/C4 recovery plant of GAIL at Lakwa shall be modified to C2 plus liquids recovery plant. C2 plus liquids shall be brought from Lakwa to Lepetkata plant through pipeline. Gas Cracker Plant at Lepetkata shall be getting C2 plus liquids from GAIL Plant at Lakwa, natural gas from OIL at Duliajan and Naphtha from NRL as feedstock for petrochemical plant at Lepetkata.