Gujarat chemical & petrochemical sector

Gujarat: The Chemicals and Petrochemicals Hub of India

Government of Gujarat

Gujarat Industrial Development Corporation

Gujarat: The Chemical and Petrochemical Hub of India Page 2

Economic Snapshot

► Gross State Domestic Product (2008-09 ):

Rs. 337217 crore (US$ 75 bn)*

► GSDP Average Growth (2004-09): 10%

► Industrial Growth Rate (2004-08): 13.7%

► Per Capita Income at current prices (2007-08):

Rs. 49,251 ( US$ 985)

National Average : Rs. 40,141 (US$ 802)

► Per Capita Income Increase

(Over 2007-08): 8.40%

► Per Capita Power Consumption: 1446 KWH

(National Avg. 690KWH)

► Urbanization: 37.4%

Source: Socio-Economic Review, Gujarat State 2009-10

Gujarat’s share in India

*Exchange Rate: 1US$=Rs.45

Despite the global economic slowdown, Gujarat achieved a GSDP growth of 11% in 2008-09

22%


Strong Industrial Base

Gujarat’s share in the worldContribution of Gujarat to India - Sectors

80%

62%

51%

45%

9%

85%Salt processing

Diamond processing

Petrochemicals

Chemicals

Pharmaceuticals

Engineering

Contribution of Gujarat to India - Products

► World’s largest grass root

petroleum refinery at Jamnagar

► India’s first LNG chemical port

terminal at Hazira

► World’s largest producer of

processed diamonds

► Amul ranked world’s top 21 largest

dairy business by International Farm

Comparison Network (IFCN)

► World’s largest producer of castor

and cumin

► World’s largest gas based single

location sponge iron plant

► World’s 3rd largest producer of

denim

► World’s largest single location

copper smelter at Dahej

42%

35%

30%

100%Soda Ash

Groundnut

Cotton

Fabrics


Industrial Composition

14%

4%

31%

10%

24%

10%7% Agriculture

Forestry, fishing, mining & quarrying

Manufacturing

Electricity, gas, water & construction

Trade, hotels, transport, storage & communication

Banking & Insurance

Public Adm.

Percentage of GSDP by Industry Groups (2008-09)

1999-00

2007-08

2008-09

0.0 20.0 40.0 60.0 80.0 100.0

18.6

19.9

17.8

39.2

40.8

41.1

42.2

39.3

41.2

Primary Secondary TertairyM

anuf

actu

ring

Mini

ng

Electri

city

Servic

es

Irriga

tion

Real E

stat

e0

100000

200000

300000

400000

500000

600000

0

100

200

300

400

500

600

700

Rs crore Number

Distribution of outstanding Investment as of Sep 2010

55%

6%

6%

11%

1%

15%

4%2% Chemicals

Food & beverages

Machinery

Metals & metal products

Miscellaneous manufacturing

Non-metallic mineral products

Textiles

Transport equipment

Manufacturing Sector : % of Subsectors

Source: CMIESource: Socio-Economic Review 2009-10

Rs

cror

e

Num

ber

of P

roje

cts


Gujarat’s Chemical and Petrochemical sector

► The well diversified chemical industry of Gujarat has complete portfolio of chemical products, including petrochemicals and downstream, pharmaceuticals, dyes and intermediates.

► Gujarat contributes 15% of the country’s chemical exports. Bulk of this goes to USA, Europe and other developed nations – a clear sign of global competitiveness.

► The 3 cracker complexes at Hazira, Vadodara and Dahej have a total installed capacity of 1,180 KTA. Another cracker is being built at Dahej by OPaL.

► Gujarat accounts for a refining capacity of 86.2 MMT out of the country’s capacity of 177 MMT as on 1.4.2009, i.e. 48%.

51%

8%

8%

6%

4%

23% Gujarat

Maharashtra

Uttar Pradesh

Tamil Nadu

Punjab

Other States

State-wise Production of Select Major Chemicals (2006-07)

62%15%

10%

13%

Gujarat

Maharashtra

West Bengal

Other States

State-wise Production of Petrochemicals(2006-07)

Source: Performance Of Chemical & Petrochemical Industry at a Glance (2001-2007), MOC&F



The state is a destination for several leading Petroleum, Chemical &

Petrochemical majors



Chemical Sector - All-India shareSpecific Chemicals Production

All-India share

Gujarat(bn USD)

India(bn USD)

Share of Gujarat Share of Gujarat

Chemicals & Petrochemicals

24.6 75.5 31% Soda Ash 100%

Refined PetroleumProducts

12.2 32.138% Caustic Soda 41%

Basic Chemicals 10.6 35.5 30%Nitrogenous Fertilizers

20%

Rubber & Plastics 0.8 7.9 10%Phosphatic Fertilizers

38%

Dyes & Intermediates 0.8 1.5 50% Salt 85%

Agro-Chemicals 0.2 0.5 40%Ethylene 50%

Polymers 56%

Source: Annual Survey of Industries, Government of India

Methanol 37%

Acetic Acid 50%

Source: CMIE

Gujarat has largest grassroot petroleum refinery in the world


Source: Industries Commissionerate / iNDEXTb, Government of Gujarat, 2007

Chemical/ Petrochem SEZs (3)

Chemical Industry Complexes

Petrochemical Industry Complexes

Chemical industrial estates (14)

Chemical product clusters (8)

Petroleum, Chemical & Petrochemical Investment Region

Narmada RiverAlia Bet

Dahej

Vadodara District

Mumbai-

Ahmedabad-Delhi

BG Rail Line

Jambusar

Mumbai-Ahmedabad NH8

Mumbai

Ahmedabad

Bharuch

Area – 310 sq. km including existing estate and SEZs

Chemical / Petrochemical Cluster

Surat

RajkotJamnagar

HAZIRAPIPAVAV

Vilayat

Valsad

Vadodara

Ahmedabad

Surat

DAHEJBhavnagar

Mehsana

Anand


Name Area & Status

Jubilant Infrastructure Ltd., Bharuch

160 Hec, Notified

Jayant Oil & Derivatives Ltd., Vilayat,, Bharuch

118 Hec, Formally Approved

Gujarat Hydrocarbon and Energy SEZ, Bharuch

450 Hec, In-principal Approved

Source: Gujarat Industrial Development Corporation.

3 SEZs

14 Industrial Estates8 Chemical Product Clusters

Name of the EstateArea

(Hectares)

Odhav, Ahmedabad 128

Naroda, Ahmedabad 363

Vatwa, Ahmedabad 534

Nandesari, Vadodara 272

P.C.C. , Vadodara 666

Dahej, Vagra, Bharuch 6131

Panoli, Ankleshwer, Bharuch 1037

Jhagadia, Bharuch 1606

Ankleshwar, Bharuch 1612

Vilayat, Bharuh 1000

Pandesara, Surat 218

Sachin, Choriyasi, Surat 771

Sarigam, Umergam, Valsad 395

Vapi, Valsad 1164

Location

Jamnagar

Mehsana

Anand

Vadodara

Bharuch

Ahmedabad

Bhavanagar

Valsad

Chemicals / Petrochemicals Investment Locations


Exploration and Development

Hydrocarbon production

Refining & blending

Shipping Storage Distribution Market

Upstream Processing

Gujarat: Industry Value Chain


Hydrocarbon Feed stocks/ Raw Materials

Intermediate ‘Building Block’ Synthesis

`

Natural Gas

` Crude Oil

Functional

Chemical

Synthesis

Value Addition

&

Processing

Finished

Consumer

Products

Downstream Processing

Industry Value Chain

Cracking

Petrochemical Products

FiberIntermediates

PolymersRubber

ChemicalsPlastics


Extraction of Ethane (C2), Propane (C3)

and Butane (C4) from LNG

Feed LNG supplied by PLL (Petronet LNG Ltd., JV of ONGC)

► The Anchor Unit, viz, ONGC Petro Additions Limited (OPaL) planned a dual feed cracker in Dahej.

► OPaL will source 973000 MTPA feedstock (C2, C3, and C4 cut) from the Petronet LNG (via its extraction unit) and 1.5 MMTPA naphtha from its Hazira and Uran units.

► After the Extraction of Ethane (C2), Propane (C3) and Butane (C4) from LNG , the lean LNG will be sent back to PLL.

► Basic polymer units are to produce LLDPE, HDPE, Polypropylene and SBR based on the ethylene and propylene generated from the cracker.

Importing Rich LNG in cryogenic stage

C2-C3-C4 Extraction

Downstream Petrochemical Processing, Dahej SEZ

Lean LNG will be sent back to PLL.

Lean LNG

The first plant in the world designed for extraction of C2+ products from rich LNG in cryogenic stage

Industry Value Chain

C2-C3-C4 Extraction

Project,Dahej SEZ


Demand Projection in Gujarat (in MW)

10525

11998

14181

17168

20545

9561

(3,209)(4,565)

(5,252)(5,811)

(1,088)

1,380

2007 2008 2009 2010 2011 2012

Capacity RequiredCapacity Installed

15372

15777

16563

17390

18256

19165

Support Infrastructure: Power

Source : Energy & Petrochemicals Department, Government of Gujarat

► Gujarat is projected to become a power surplus

state by 2012 assuring high quality power

supply

► Gujarat has installed capacity of 12,258 MW and

has additional captive power generation capacity

of 4,685 MW

► Private sector in Gujarat contributes 25% of

installed capacity

► Renewable energy sector to be the next big

focus: current installed capacity of wind power is

1625 MW and is expected to reach 6225 MW by

2020. The state has proposed to have installed

capacity of 500 MW of solar power by 2015

► Transmission losses in 2007-08 were 3.8%,

amongst the lowest in the country.

► All the 18000 villages of Gujarat have 24 hour

power supply


Support Infrastructure: Ports

► Longest coastline in the country – 1600 km

► 41 Major and minor ports, 2 Container terminals and 2 LNG terminals

► In 2007-08, Gujarat ports handled 30% of total cargo handled by Indian ports. Minor ports of Gujarat handled 75% of the cargo handled by all minor ports of India.

► Major commodities handled at Gujarat ports are Crude Oil and Petroleum-Oil–Lubricants (POL) (48%), Cement & Coal (8.5% share each), Food grains, Edible oils, Timber and Steel pipes etc.

► Gujarat aims to capture over 3/4 of the northwest hinterland traffic from the present 46% by 2020.

Natural Gateway to the rich land-locked Northern and Central hinterland

Source : Blueprint for Infrastructure in Gujarat (BIG 2020) – Draft Final Report

► 1st LNG terminal

► 1st Chemical terminal

► Biggest ship-breaking yard

► 1st double stack container train

► 1st private port rail company

Some Firsts’ of Gujarat Ports


Support Infrastructure: Gas

► Accounts for 32% gas consumption in

the country

► Only state to have an Integrated State

Wide Gas Grid – on Open Access

Common Carrier basis

► 2200 kms of gas grid is in operation.

Another 600 kms to be

commissioned.

► Only state in the country to have two

LNG terminals (viz. Dahej & Hazira)

► State owned company, Gujarat State

Petroleum Corporation Ltd. (GSPC)

owns rich gas reserves in the KG

Basin

Source : Gujarat State Petroleum Corporation (GSPC)


Support Infrastructure: Water

Uneven water distribution

addressed through inter–

basin water transfer

Narmada Canal 458 km

Region having perennial water sources

Bulk lines completed

Bulk lines in progress

Bulk lines to be taken up

The only State to have inter linkages across rivers (> 20 rivers are interlinked)


Environmental Management

► Established Gujarat Cleaner Production Centre for promotion of Cleaner Production /

Clean Technology under technical guidance of UNIDO.

► MoU is being signed with GTZ-Advisory Services for Environmental Management

(ASEM) for developing Eco-Industrial Parks.

► MoU signed between GOG, DMICDC and Japanese Corporations for developing Smart

Cities and Eco Townships in Dahej and Changodar.

► Under Industrial Policy 2009, State Government provides financial assistance for

implementation of Cleaner Production (CP) / Clean Technology (CT) tools.

► State Government has instituted Cleaner Production Award to motivate industries for

adopting CP/CT.

► 10 Green Societies formed since 2008.


PCPIR: Unique Selling Proposition

PCPIR - Snapshot

PCPIR is a specifically delineated Investment

Region planned for the establishment of production facilities

for petroleum, chemicals and petrochemicals

Well-defined Infrastructure

Quality Services

Legal Framework

Abundance of Natural Resources

Export Promotion Measures

Petroleum Chemical and Petrochemical Investment Region

LocationDahej in Bharuch district, South Gujarat

Area 453 sq. km.

Focus Sector Chemical & Petrochemical

Investment Already Made & Committed

Rs.90,000 crore (USD 20.5 bn)

Infrastructure Development Rs.3,200 crore (USD 727 mn)

Anchor TenantONGC Petro additions Limited (OPaL)

Location


PCPIR Advantage

► Concentration of Petroleum, Chemical and Petrochemical estates around PCPIR

► Rich natural resources and feedstock

► All infrastructure - road, rail, port, power, gas, water - in place, with planned up-gradation

► Chemical Port and Storage Facility

► LNG terminal

► PCPIR specific infrastructure - effluent disposal pipelines, solid waste disposal sites

► Quality Work Force, Peaceful Labour

Gujarat accounts for only 0.5% of mandays lost in the country while having 16% of industrial production


Industrial Estates and Clusters

Kutch

Jamnagar

Porbandar

JunagadhAmreli

Bhavnagar

Rajkot

Surendranagar

Banaskantha

PatanMehsana

Himmatnagar

Kheda Panchmahal

Dahod

Vadodara

BharuchNarmada

Surat

Navsari

Valsad

Anand

Gandhinagar

Ahmedabad

Knowledge corridor

Chemicals, petrochem. pharma, textiles and engineering

Industrial corridor(DMIC)

60 special economic zones (SEZs) across Gujarat

Gujarat International Finance-Tec City

Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR)

Bio-Tech cluster

Soda ash and salt-based industries, cement and steel pipes

182 industrial estates across Gujarat

Soda ash and salt based

Engineering and ceramics

18 Captive Ports along 1600 km coastline across Gujarat

Special Investment Region (SIR)

Petroleum and brass parts

To Bombay

Savli Biotech Park

202 industrial estates across Gujarat

60 special economic zones (SEZs) across Gujarat

Balanced Development and Common Infrastructure Planning & Sharing


Business OpportunitiesChemicals and Petrochemicals

High performance chemicals

Engineering plastics

Pigments and coating products

Refinery downstream projects

Mineral resource-based projects

Specialty chemicals

Nanotechnology-based projects

Bio refineries

Welcome to a whole new world of opportunities

Thank You

Gujarat Industrial Development Corporation (GIDC)(A Government of Gujarat Undertaking)2nd Floor, Block No.4Udyog Bhavan, Sector 11Gandhinagar 382 017Gujarat, IndiaPhone: +91 79 23250636/37Fax: +91 79 [email protected]

Documents

Gujarat chemical & petrochemical sector