GAIL plans to double output capacity at BCPL

11 June 2019

Gail India, the gas transportation company is planning to double the capacity of its petrochemical subsidiary Brahmaputra Cracker and Polymer Limited (BCPL) in Assam. Gail has already commissioned a study for doubling the firm’s petrochemical capacity, B C Tripathi, CMD had said at a recent press conference.

Natural gas supply

BCPL, which was born out of the Assam Accord of August 1985, has been a long time in the making and was finally commissioned in 2016. Tripathi said the plant operated at 107% capacity last fiscal and is currently running at 110% capacity. The plant had suffered low capacity utilization clocking just 37% in fiscal 2017, and 78% in 2018. “It started as a sub-optimal capacity plant, more as a social objective and feedstock problems have been ironed out. It has turned to profit this year onwards, expect it to make regular profits of Rs 2bn plus,” Tripathi said.

Natural gas supply from Oil and Natural Gas Corporation was also started in February 2017, after the connecting pipeline came on stream in December 2016. The required quantity of naphtha is being supplied by Numaligarh Refinery Ltd., said CRISIL in a ratings report. Gail is also building a natural gas pipeline from Barauni to Guwahati.

BCPL’s expansion would ride on the capacity enhancement planned at the Numaligarh Refinery. In January, the Cabinet approved an Rs 225.94bn capacity expansion from 3 MMTPA to 9 MMTPA which is expected to be completed in four years. BCPL currently has a capacity to produce 220,000 tonne per annum of polyethylene products, and 60,000 TPA of polypropylene.

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