Petronet-LNG receives EC for Dahej petchem
After receiving environmental clearance, Petronet-LNG can now move ahead with its proposed Rs20,685cr ($2.49bn) petchem project at Dahej.
On March 12 (2024), Narendra Modi laid the project's foundation stone on a video call while visiting Ahmedabad. Two weeks earlier, the environment ministry's Expert Appraisal Committee (EAC) recommended clearance on February 29 (2024), attaching 11 general and 28 specific conditions.
Petronet-LNG applied for clearance on February 13 (2024) for the project proposed next to its 17.5m t/y LNG terminal at Luvara village in Bharuch district. In focus is a proposed 750,000-t/y Propane Dehydrogenation (PDH) and a 500,000-t/y Polypropylene (PP) facility.
"Associated facilities such as utility plants, power plants, storage tanks, associated pipelines and a dispatch terminal will be installed," said Petronet-LNG in its application. All the facilities are planned on 47.73 hectares, but Petronet-LNG wants to make the best use of its resources by sharing some of the LNG terminal's utilities with the new petchem facility, including the water treatment block, fire-fighting facilities, flare systems, electrical substation, warehouse, and a modified admin building.
If all goes to plan, Petronet-LNG wants to complete the project within 48 months and has set aside Rs33cr ($3.98m) as a one-off expenditure for environmental management, plus a recurring annual cost of Rs1cr ($120,720). Another Rs5cr ($603,590) is allocated towards Corporate Environment Responsibility (CER).
Around 2000 people will be deployed during construction - 250 directly and 1750 indirectly. Petronet-LNG expects to generate income by selling polypropylene, propylene, propane, hydrogen and ethane.
Last year (2023), Petronet-LNG directors approved a term sheet to supply Deepak Phenolics 250,000 t/y of propylene and 11,000 t/y of hydrogen for 15 years. On January 9 (2023), Petronet-LNG opened bids from technology providers for the PDH facility from US-based Lummus and Honeywell UOP.
For the PP unit, only Lummus and US-based WR Grace bid. "For the PDH unit, Petronet-LNG will award the contract to Honeywell and for the PP unit, Lummus has been finalised," says a source.