Kuwait's Petrochemical Industries close to buying 45% in ONGC's OpaL

Kuwait's Petrochemical Industries Company (PIC) is close to buying a 45-per cent stake in Gujarat-based OpaL chemical factory, PIC's chief executive yesterday told state news agency KUNA.

ONGC Petro-additions Ltd known as OpaL, is a joint venture between Oil and Natural Gas Corporation (ONGC), Gujarat State Petroleum Corporation (GSPC) and Gas Authority of India Limited (GAIL).

OPaL is setting up a grass root mega petrochemical project at Dahej, Gujarat, and is said to be the largest one of its kind in India.

OPal has been billed as India's largest dual-feed cracker unit plant with an ethylene cracking capacity of 1.1-million metric tones per annum (MMTA). Opal will source naphtha and C2C3 feedstock (ethylene, toluene etc) from ONGC's Hazira, Uran and Dahej plants.

Inclusive of all products that will be produced, the petrochemical project will have a capacity of 1.9 MMTA and will generate Rs12,000 crore in revenue annually.

The demand for polymers in India is huge and is expected to further rise with the growth in GDP. Although India will continue to be in deficit of polyethylene in the future, OPaL will also be marketing substantial part of its produce in the international market.

ONGC, the key promoter will be supplying the feedstock required for this project from its Hazira, Uran and Dahej facilities.

Asaad Al-Saad, CEO of PIC said that delays in the completion of the deal is due to the stringent laws, but expressed his optimism of the deal going through since the Indian government supports the transaction.

"We faced many challenges in order to reach an agreement and we aim to get the facilities," said Saad, on the sidelines of an annual petrochemicals industry forum in Dubai.

Founded in 1963 and based in Safat, Kuwait, PIC manufactures and markets fertilizers, olefins and aromatics.

It has manufacturing sites in Asia, Africa, and Eastern Europe. PIC operates as a subsidiary of Kuwait Petroleum Corporation.