Kazakhstan wants GAIL, IOC to set up petrochem plant

GAIL India's ambition to set up a petrochemical plant overseas has got a boost, with energy-rich Kazakhstan inviting the state-run firm, along with Indian Oil Corporation (IOC), for talks to set up the mega chemical unit.

Kazakhstan President Nursultan Nazarbayev expressed his desire for Indian firms setting up a petrochemical plant in the Central Asian nation when he met Petroleum Minister Murli Deora over the weekend.

"He is very keen (on the petrochem plant) and has invited us for talks," Oil Secretary R S Pandey said on discussions with Nazarbayev.

Kazakhstan is the second country, after gas-rich Qatar, to invite the home-grown gas transportation and petrochemical major for talks on the $1.3 billion plant.

GAIL has a tie-up with petrochemical-to-refining firm Reliance Industries for jointly setting up a mega gas-based petrochemical plant overseas.

For Kazakhstan, IOC, which also harbours an ambition to grow big in petrochemical business, would tag along with GAIL.

GAIL and Reliance had on December 4, 2007 signed an MoU to explore possibility of a 1.9-million-tonne petrochemical plant in Qatar, Abu Dhabi, Bahrain, Vietnam, Australia, South Africa, Angola, Mexico, Russia and Former Soviet Union.

Officials said that the agreement with Reliance was part of GAIL's strategy to expand its petrochemical business.

Petrochemical is one of the three core areas identified by U D Choubey after he took over as the head of India's largest gas transmission and marketing company in 2007. Other focus areas being gas transmission and distribution, and city gas distribution.