Assam: Oil and Natural Gas Corp (ONGC) and Oil India Ltd (OIL) will supply subsidised natural gas to the Rs5460.61 crore Assam Gas Cracker project.
ONGC and GAIL will supply feedstock to the petrochemical project at Rs1920 per thousand cubic metres, about one-third the price at which other petrochemical projects get natural gas in the country, officials said here.
The subsidised natural power and fertiliser units in the country cost Rs3200 per thousand cubic metres while for the rest of the industry including petrochemical plants cost $3.86 per million (Rs16 crore) British thermal unit.
Officials said Assam Gas Cracker project, the foundation for which is laid by Prime Minister Manmohan Singh on 9 April, was conceived in 1985 and is now being implemented by Brahmaputra Cracker and Polymer Limited, a JV company promoted by GAIL with 70% equity stake. The remaining 30% equity will be shared equally among OIL, NRL and the Assam government.
The project was originally supposed to be implemented by Reliance Industries. Reliance was to get natural gas at Rs600 per thousand cubic metres. However, Reliance walked out of the project.
OIL will supply 6 million standard cubic metres per day of natural gas from its Duliajan field. ONGC will supply 1.35 mmscmd up to 31 March, 2012 and 1 mmscmd thereafter. The Petrochemical Complex would also utilise 160,000 tonnes per annum of petrochemical grade Naphtha from Numaligarh Refinery Ltd (NRL).