GAIL takes 9 per cent stake in ONGC Petro-additions

07 March 2009

Gas Authority of India Ltd (GAIL) has acquired a nine per cent stake in ONGC Petro-additions Ltd (OPaL), a Rs13,500 crore petrochemicals project being set up by the Oil and Natural Gas Corporation (ONGC), reports quoting ONGC sources said.

ONGC Petro-additions is a special purpose vehicle created for executing the Rs13,500 crore petrochemicals complex at Dahej, in Gujarat.

GAIL, which already has a presence in the petrochemicals business, is reported to have sought 19 per cent equity in OPaL. Several foreign companies are also reported to be interested in acquiring a stake in the ONGC project.

With 50 per cent of the project already tied up and 25 per cent reserved for public issue, ONGC said OPaL has had to turn down a lot of overseas offers.

The public offer, which will be at a premium, is expected to come later after the project gets off the ground.

OPaL will use C2-C3 (ethane and propane) compounds extracted from imported liquefied natural gas (LNG) to make polymers. Commissioning of the project has been tied to the setting up of a cracker unit.