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GAIL to Add a Massive Polypropylene Storage Unit at its New Unit at Pata Petrochemical Complex

GAIL (India) Ltd has revised its petrochemical expansion plan of Pata petrochemical complex and has decided to add some offsite storage facilities to ensure efficient feedstock and product storage. As per the GAIL’s initial strategy, the investment capital over the addition of 60KTPA Polypropylene unit at the gas-based Pata petrochemical complex in Uttar Pradesh was estimated around INR 7.50 billion.  However, the PSU came up with some manipulations after a detailed study of the project plan wherein it suggested some necessary additions, particularly with respect to the feedstock and product storage facilities. The company has henceforth escalated the project cost by over 20% to INR 9.10 billion. According to a company official, since the petrochemical site is landlocked, one of the important additions to the project plan will be an offsite warehouse capable of holding nearly two months of Polypropylene inventory. As per the project proposal, GAIL plans to use around 50,000 tpy of polymer grade Propylene produced at the Pata plant as the key feedstock for the new PP unit. Currently, GAIL is selling the Propylene produced at its Pata complex to several clients. In addition, the Pata complex has the capacity to produce 810 KTPA of Polyethylene (PE) and 20 KTPA of Butene-1. Polypropylene, popularly known as PP, is a tough crystalline thermoplastic produced from Propylene serving versatile applications such as plastic, fibre in automobiles, consumer goods and furniture, apart from other industrial uses. By stepping into Polypropylene production, GAIL is expanding its petrochemicals portfolio and entering the league of major manufacturers of the country when India is already following the footsteps of becoming a global manufacturing hub.