GAIL,IOCL ink MoU, to explore possibility of setting cracker complex

New Delhi, Oct 31 (UNI) GAIL (India) Ltd and Indian Oil Corporation Ltd (IOCL) today said they will explore the possibility of setting up a cracker complex, including downstream derivatives at Barauni in Begusarai district of Bihar.

The companies have signed a Memorandum of Understanding (MoU) for co-operation in the area of petrochemicals.

A joint working committee, consisting of two representatives from each company, will be formed for undertaking techno-economic feasibility study of the project, including feedstock -- naphtha and natural gas -- management.

As per the deal, the GAIL will assess the prospect of natural gas availability from the KG basin field, including the potentiality of the rich gas to be used as part of the feedstock for the project.

On the other hand, Indian Oil will assess the prospect of availability of off-gas and naphtha not only from Barauni refinery but also from other operating refineries of the company, to be used as predominant feedstock for the said project.

The GAIL and IndianOil will subsequently develop appropriate definitive agreements for supply of the gas and feedstocks to the joint venture, once formed.

UNI SG RL DS1457