Ineos, Mitsui in race for equity stake in ONGC's Dahej project

Ineos, which is one of the world's five largest chemical companies, Mitsubishi Chemicals, Japan's top petrochemical maker, and Japan's Mitsui Chemicals are among the multinational companies in the fray for a stake in the Rs 12,500-crore OPaL.  OPaL is also considering an equity tie-up with Petronet LNG (PLL), sources said.  OPaL has roped in Rothschild and ABN Amro to scout for equity partners.  According to sources, the company is also in talks with a couple of oil and gas PSUs, including Indian Oil Corporation (IOC), and overseas financial institutions like the West Asia-based QIP group.  A senior ONGC official refused to comment on prospective investors, stating that negotiations were at an early stage and the partners would be finalised in the next couple of months.  ONGC holds a controlling 26 per cent equity share in OPaL, which is evaluating a number of partners, and the proportion of the equity tie-up will be less than 26 per cent.  The upcoming petrochemical complex is an anchor tenant in the upcoming Dahej Special Economic Zone (DSL), which is spread over 1,700 hectares. ONGC holds a 24 per cent equity stake in DSL, while state-owned Gujarat Industrial Development Corporation (GIDC) owns a controlling 26 per cent stake.  The petrochemical complex will come up on 500 hectares with a 55-acre ethane and heavier hydrocarbons (C2+) extraction unit adjacent to it.  Over 90 per cent of the work on ONGC's C2+ extraction plant is expected to be commissioned by this year. The unit will act as a feedstock provider to the petrochemical complex.  OPaL is targetting to sell the feedstock to companies like Reliance Industries-owned Indian Petrochemical Corporation (IPCL) in Dahej till its petrochemical complex commissions in 2012.