Ethane Cracking Plant Tender

Scope To Set up Ethane Cracking Plant in Western Part of the India.Indian government-backed gas supplier GAIL is looking to set up an ethane cracking plant.The new Rs400bn 4.9bn facility will be built near GAILs liquefied natural gas LNG import plant in the Western part of the country.Companies in India are increasing their petrochemical production capacity as the countrys growing economy increases demand for products such as plastics paints and adhesives.Ethylene is an essential product for manufacturing plastics and it is produced by cracking ethane.Indian Oil a leading refiner has estimated that the demand for petrochemicals might increase threefold by 2040 necessitating large investments by entities to establish new facilities.According to a source the company is looking for a site in Dabhol Maharashtra to set up the 1.5 million tonnes a year mtpa cracking facility.It plans to import feedstock ethane for the plant from the US.If a deal in Dabhol is not signed GAIL is weighing the possibility of buying land in Madhya Pradesh a neighbouring state of Maharashtra.The planned cracking plant will have the ability to process liquefied petroleum gas LPG by up to 40 providing the flexibility to switch to cheaper feedstocks for increased profits.