Friday 31 January 2014

GAIL to import HDPE, LLDPE; Catering to the rising demand likely intent

GAIL is in the process of importing HDPE and LLDPE from overseas locations, according to an advertisement by the state-run petrochemical producer on its website. The underlying intent could be viewed as an attempt of the company to cater to the excess demand for the polymers in the country to which its current production is not sufficient to cater to.Besides, the import strategy might also be implemented to cater to the demand for those grades of the polymers that are not produced in the country. As a matter of fact, certain grades, like the Metallocene and Hexane grades of LLDPE are not produced in India, despite prevalence of strong demand for these in the country. Demand these grades in the country, thus, have to be catered to through imports from countries, like Singapore, Thailand.

 Meanwhile, GAIL is also in the advanced stages of its ongoing project of increasing its production capacity at its existing petrochemical plant at Pata in Uttar Pradesh by setting up a HDPE/LLDPE Swing plant of 450,000 tonne per annum capacity.

Currently, the state-run petrochemical producer produces 100,000 tonne per annum of HDPE and 210,000 tonne per annum of LLDPE in its production complex at Pata.

By Indu Bhusan Nath
ibnath@indianpetrochem.com

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