June 24, 2008

Assam Petrochemicals to Build $125 Million Methanol Plant

Assam Petrochemicals has announced its plans to set up a new methanol plant at Namrup, in the Indian state of Assam, with a production capacity of 165,000 tons per year, at an investment cost of $125 million.

Assam Petrochemicals (APL) is currently in talks with the Oil and Natural Gas Corporation (ONGC) and Oil India (OIL) for supply of natural gas as feedstock for the project.

APL has not yet received gas allocation for the new plant, but ONGC and OIL are reportedly scouting for new gas reserves in upper Assam. APL is likely to be in contention for gas supplies with the Gas Auhtority of India, which is setting up a 280,000-ton-per-year cracking unit in Assam.