New Delhi - GAIL India said it will convert its liquefied petroleum gas (LPG) recovery unit in Assam, India, to supply C2+ hydrocarbon feedstock for a petrochemical project being set up by Brahmaputra Cracker & Polymer Ltd. (BCPL) in Lepetkata, near Dibrugarh, India.

Denying media reports that the recovery unit was being shut down, GAIL said the plant was only being converted to supply feedstock to BCPL's petrochemical unit and would continue to function under BCPL.

The Rs 8,920 crore petrochemical complex, which is in the process of being commissioned, includes a cracker to produce 220,000 t/y of ethylene and 60,000 t/y of propylene, as well as a 60,000-t/y polypropylene plant.  Operations were originally scheduled to begin by December 2013.

To ensure the project is operational and viable, BCPL has arranged for the supply of natural gas from Oil India Ltd. (OIL) and Oil and Natural Gas Corp. Ltd., and for naphtha from Numaligarh Refinery Ltd. (NRL).  Gas available in and around the Lakwa region is also being considered as feedstock for BCPL's complex.

BCPL is a joint venture owned 70% by GAIL and 10% each by OIL, NRL and the Assam government.