Petronet LNG board gave its approval for the establishment of a petrochemical plant in Dahej, Gujarat, with an estimated cost of Rs 20,685 crore. The project, which has obtained the necessary statutory clearances, is set to be completed within the next four years, as announced by the company's CEO and MD, Akshay Kumar Singh, during a media briefing.

According to a regulatory filing, the project aims to generate revenue through the sale of Poly-Propylene, Propylene, Propane, Hydrogen, and Ethane. Additionally, the project will benefit from the utilisation of 'ColdEnergy' from PLL's existing Dahej LNG terminal, enhancing its energy efficiency. The state-owned company also plans to develop a 25-hectare green belt area in the region.

The establishment of this plant is anticipated to enhance the country's self-sufficiency in the petrochemical industry. The filing further highlighted the project's potential to bring about socio-economic development in the area, creating significant opportunities for both direct and indirect employment due to its substantial planned investment.

In another development, the board approved a binding term sheet between Petronet LNG Limited (PLL) and Deepak Phenolics Limited (DPL) for the off take of 250 KTPA of Propylene and 11 KTPA of hydrogen from the Petronet Petrochemical Project in Dahej, Gujarat. This agreement is set to span a period of 15 years from the first supply of propylene and hydrogen by PLL to DPL.

This expansion into petrochemicals aligns with the government's vision of establishing the country as a petrochemical hub. Several state-run companies, including ONGC, are also actively working to strengthen their presence in this sector.

Despite potential diplomatic challenges, as indicated by the recent sentencing of eight former Indian navy personnel in Qatar, Petronet LNG CEO Akshay Kumar Singh expressed confidence that the ongoing negotiations between India and Qatar for extending their long-term contracts for natural gas imports would continue smoothly. He emphasised that the matter would be addressed at the highest levels of the country, hoping it would not impact business relations. Singh also highlighted that Petronet currently procures 8.5 million metric tonne per year of LNG from Qatar, out of the total 20 mtpa contracted by the company, with the remaining supply sourced from other countries, ensuring a balanced portfolio.

Source: Mint