FEASIBILITY REPORT

FOR
500 KTPA PROPANE DEHYDROGENATION UNIT
INTEGRATED WITH POLYPROPYLENE UNIT AND
PROPANE IMPORT & STORAGE TERMINAL
AT
GAIL (India) USAR and URAN
MAHARASHTRA

REPORT No. B078-RP-0242-0001

MARCH 2019

This report is prepared for M/s GAIL and it is for use by M/s
GAIL or their assigned representatives / organizations only.
The matter contained in the report is confidential.

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 Copyright

This document is copyright protected by EIL and is produced for the Client M/s GAIL (India)
Limited.

Request for additional copies or permission to reproduce any part of the document for any
commercial purpose other than the intended purpose should be addressed as shown
below:

Head of Department,
Process-1
Engineers India Limited,
1, Bhikaji Cama Place,
New Delhi – 110066
India
Telephone: +91-11-26763444

EIL reserves the right to initiate appropriate legal action against any unauthorized use of
the Report.

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Contents
1.0 Executive Summary.............................................................................................................5
1.1 Introduction ........................................................................................................................................ 5
1.2 Basis of Study .................................................................................................................................... 5
1.3 Project location .................................................................................................................................. 6
1.4 Existing Facilities................................................................................................................................ 6
1.5 Key considerations of Project ............................................................................................................. 7
1.6 Plant Capacity .................................................................................................................................... 8
1.7 On-stream Hours................................................................................................................................ 8
1.8 Feed Stock Specification .................................................................................................................... 9
1.9 Product Profile ................................................................................................................................... 9
1.9.1 Applications and Market coverage .................................................................................................. 9
1.10 Project Configuration .................................................................................................................... 10
1.11 Overall Complex Material Balance ................................................................................................ 11
1.12 Major Utility Capacities ................................................................................................................. 11
1.12.1 Power Supply .................................................................................................................................. 12
1.13 Major Offsite Systems................................................................................................................... 12
1.14 Products dispatch ......................................................................................................................... 12
1.15 Land Requirement: ....................................................................................................................... 12
1.16 Environmental Considerations ...................................................................................................... 13
1.17 Project Implementation Strategy and Schedule ............................................................................ 14
1.18 Project Estimated Cost ................................................................................................................. 14
1.18.1 Key Assumptions .......................................................................................................................... 14
1.18.2 Project Cost .................................................................................................................................. 14
1.19 Plot Plan ....................................................................................................................................... 14

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 SECTION 1.0
EXECUTIVE SUMMARY

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1.0 Executive Summary

1.1 Introduction

GAIL (India) Limited is the largest state-owned Natural Gas transportation and distribution company
in India. It has following business segments: Natural Gas, Liquid Hydrocarbon, Liquefied Petroleum
Gas Transmission, Petrochemical, City Gas Distribution, Exploration and Production and Electricity
Generation. GAIL has been conferred with the Maharatna status by the Government of India.

GAIL has six LPG recovery plants across various states in India. LPG recovery Plant at Usar was
commissioned in 1998 with design capacity to process 5.0 MMSCMD of rich gas. Presently, LPG
Usar plant is under shutdown and is in preservation mode due to non-availability of rich gas.

GAIL is planning to utilize the land and other facilities existing at Usar and set up GAIL Petrochemical
Complex Project’ Usar “wherein a 500 KTPA Propane Dehydrogenation unit (PDH) integrated with
Polypropylene unit (PPU) is proposed to be set up. The feedstock propane shall be imported from
JNPT port and a cryogenic terminal shall be set up at Uran for Propane storage. From Uran the
Propane shall be pumped through a cross country pipeline to USAR for processing.

The proposed project shall benefit from the land in possession of GAIL as well as coastal location of
the existing facility for both Propane Import, storage and product evacuation, nearby port facility,
proximity to highways and ease of getting environmental clearance.

1.2 Basis of Study

The study is carried out for the Proposed PDH – PP facility at USAR, Maharashtra to establish
feasibility along with following broad objectives:
 Meet the projected increase in domestic demand of petrochemicals.
 Maximize value addition and return on investment through:
 Production of Petrochemicals
 Utilize existing Land and infrastructure available
 Proximity to port terminals for feedstock sourcing
 Maximise use of Indigenous Hardware

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1.3 Project location

PDH PP Plant, USAR:

The project will be located at the existing LPG recovery plant of GAIL-Usar, Alibagh, Maharashtra.
The proposed facilities shall be located within the existing complex. The plot area at USAR is shown
below.

Propane Import Terminal, Uran:

A new Propane Import Terminal is being planned in Uran, Maharashtra for the import of propane.
From the terminal, propane shall be pumped to the GAIL-Usar plant through a dedicated Pipeline.

1.4 Existing Facilities

GAIL has a LPG recovery plants in USAR. LPG recovery Plant at USAR was commissioned in 1998
with design capacity to process 5.0 MMSCMD of rich gas. Presently, LPG USAR plant is under
shutdown due to non availability of rich gas.

Existing Offsite & Utilities System

Mounded LPG Storage : 4290 (3 MST X 1430 each) MT

Naphtha Storage Tank : 50 KL

Methanol Storage Tank : 24 KL

Diesel Storage Tank : 16 KL

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 Odourant dosing pot : 0.5 M3

Plant Air Receiver : 45 M3

Instrument Air Receiver : 100 M3

Nitrogen Storage Tank : 35 M3

Compressed Air System

Instrument Air Compressors : 3 X 585 Kg/Hr @ 8.5 Kg/Cm2

Plant Air : 340 NM3/Hr

Instrument Air Dryer Units : 2 X 350 NM3/Hr
Instrument Air : 340 NM3/Hr
Air (Nitrogen) Compressors : 2 X 625 Kg/Hr @ 8.5 Kg/Cm2

PSA N2 System : 200 NM3/Hr

Cooling Water System : 600 M3/Hr

Boiler : 5 TON/Hr

Flare System : 200 Tons/Hr of Hydrocarbon

LPG Road Loading Facilities : 6 + 1 (Sick Tanker Gantry)

Naphtha Road loading facilities : 1 (Loading bay) + 1 (Sick bay)

LPG Pipeline Transfer Facility : 8” Pipeline of 1.5 Km to HPCL

Raw Water Reservoirs : 2750 (R1=1100+R2=1100+Common = 550) M3

1.5 Key considerations of Project

 Propane Import
o Propane availability: Propane receipt will be through existing JNPT port. The Propane (i.e.
imported and unloaded from Ship tanker in refrigerated form) shall be stored at Uran
terminal from where propane feed shall be pumped to USAR through pipeline for
conversion to Propylene and Polypropylene.

 Propane Storage Terminal

o Two numbers of cryogenic full containment Double Wall Storage Tanks (DWST) shall be
provided for storing propane. The each tank capacity shall be 30,000 MT (Pumpable), the
tank shall be designed to handle propane @ (-) 43°C.

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  Propane Transfer
o Heated propane liquid shall be transported through Pipeline from Uran to USAR complex
through cross country pipeline.

 Propane Storage
o 5 Days storage capacity with each bullet of 4270 m3 capacity of propane storage.

 Product Storage
o Poly Propylene product storage shall be kept on 21 Days basis.

 Intermediate Storage
o Intermediate storage of propylene shall be provided to take care of any unexpected
outages in upstream or downstream process units.

 Power
o The power requirement for the complex shall be sourced through Grid.
o No Captive Power generation shall be considered

 Utilities
o All utilities shall be captively generated except for treated water which shall be made
available at the Battery Limit from MIDC.

1.6 Plant Capacity

Design Capacity: 500 000’Tons / annum of Polypropylene production.

Propane De Hydrogenation Unit : 500 KTPA (Propylene basis)
Poly Propylene Unit : 500 KTPA

Turn down capacity shall be corresponding to Turndown desired is 50% of design capacities.

1.7 On-stream Hours

The units shall be designed for an on-stream hours of 8000 hrs per annum.

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1.8 Feed Stock Specification
The import commercial grade propane specification considered for the project is as below:
Table1.2.6 : Feed Commercial Grade Propane Specifications
Spec Unit Value Test Method
Composition Liquid ASTM D -2163
Volume % %V Max 2.0
Ethane Min 95.0
Propane Max 4.0
Vapor
ButanesPressure @ 100 Psig Max 200
NIL
Hydrogen Sulphide Ppm(wt) Max 5 UOP – 212
deg F
Pentanes & Heavier (Kpa(g)) (1380)
Max 0.1
Specific Gravity 60Deg F ASTM – D 2598
Olefins
Total sulfur, Ppm (wt) Max 30 ASTM D – 2784
, mg/kg
Water Content Ppm(wt) Max 10 ASTM E – 700
Copper corrosion Max 1 ASTM D -1838
Residue, max Wt% 0.05

1.9 Product Profile

The proposed project is planned to produce Homopolymer grade Polypropylene.
The plant shall be capable and designed for production of following six grades of Homopolymer
Polypropylene.
Table 1.2.7: Product Grades
Sr End Use

1 TQ Film
2 Woven sacks
3 Fiber & Filaments
4 BOPP Films
5 Injection Molding
6 Extrusion / Thermoforming

Apart from Polypropylene, the project also intends to produce C4 LPG from the Imported Propane.
The Imported Propane is expected to contain around 4 wt% C4 content. This C4’s are normally
separated from the Propane Feed to the PDH reaction. The De-Propanizer Bottoms i.e C4’s can be
either utilized for internal Fuel consumption or can be sold as C4 LPG. The existing facilities at
USAR complex shall be utilized for C4 LPG storage and transfer.

1.9.1 Applications and Market coverage

The proposed Polypropylene unit shall be designed to produce Homopolymer grade with following
market coverage - Injection molding, Blow molding, thermoforming, sheet Tape / (Raffia), Fiber, Cas.
/ TQPP & BOPP films, profile extrusion etc.
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1.10 Project Configuration
The proposed project shall consist of a propane import terminal and storage at Uran from here the
propane feed shall be pumped to Usar where it is fed to a Propane De-Hydrogenation Unit (PDH)
which utilizes this propane as feedstock for conversion into propylene through De-Hydrogenation
route. The generated propylene from the PDH unit will be used in a downstream Polypropylene unit
to convert to Poly propylene unit.
A basic schematic of the overall configuration and import terminal is as under:

Figure: Project Overall Configuration

C4 LPG

Figure: Import terminal configuration

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1.11 Overall Complex Material Balance
Material balance / Feedstock Purchases & Product sales for the overall project case is given in Table
below.
Table 1.3: Overall Material Balance
Description 000’Tons / Annum
FEEDSTOCK PURCHASES
PROPANE 601
PRODUCT SALES
POLYPROPYLENE 500
C4 LPG 25

1.12 Major Utility Capacities

The total estimated utility consumption for proposed complex is tabulated below.
Table 1.4: Utility Requirement

Utilities & Offsites Base Case – USAR Complex

Steam & Power Generation • Gas based steam Boiler (50 TPH) (1+1) x 405 DegC @ 43
kg/cm2a including de-aeration system.
• Power Import from Grid.
• ~ 125.508 MW (Design)
• ~ 100.250 MW (Operating)

Compressed Air System • Nitrogen Plant – 2600 Nm3/hr

• Plant Air – 760 Nm3/hr
• Instrument Air – 2770 Nm3/hr

Cooling Water Total Requirement – 16000 m3/hr

(4 + 1) Cells of 4000 m3 each
(4+1) Cooling water circulation pumps of 4000 m3/hr each.

Treated Water System Treated Water rate– 480 m3/hr (Considering Recycle)
Three (3) Treated Water Storage tanks based on 7.5 day
storage.

RO Based DM Plant 105 M3/hr (feed basis)

Condensate Polishing Unit 12 m3/hr

Effluent Treatment Plant 15 m3/hr

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 1.12.1 Power Supply
The power requirement for the proposed plant and associated facilities shall be sourced through Grid.

1.13 Major Offsite Systems

All feeds / products and intermediate storages are considered as per agreed days of storage.
Product warehouse facility has been considered for storage of solid products.
Based on the unit capacities and operating requirements following are the storages and pipelines
considered for the proposed project.

Table 1.5: Major Offsite Systems

Utilities & Offsites Capacity

Storages Propane – 5 Mounded Bullets

Propylene - 2 Mounded Bullets
Offspec Propylene – 1 Mounded Bullet
Treated Water – 3 Tanks
Hydrogen – 2 Bullets
Polypropylene Warehouse - 1
Fire water reservoir

Onshore Pipelines Cryo Propane Pipeline at Uran– 2 x 20 “

Cross – Country Propane Pipeline - 12”
Treated Raw Water- 28”

1.14 Products dispatch

The Polypropylene bags after the bagging system shall be stored in a 3 tier warehouse. Further
these bags will be loaded and dispatched through the trucks. Finished Polypropylene product shall
be dispatched via road.

1.15 Land Requirement:

At present GAIL is in possession of 321 Acres of land at USAR, Maharshtra. The land requirement for
the proposed project is estimated as below:

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 Overall land requirement- Total Complex Area : 321 Acres /130 Hectares
Plant Area : 215 Acres / 87 Hectares
Green Belt Provided (33%) : 106 Acres / 43 Hectares

Overall area of the proposed project is approximately 160 acres

No additional land area is to be purchased by GAIL, as the proposed complex can

be accommodated within the existing plot area.

1.16 Environmental Considerations

Various pollution control measures required to meet the prevailing environmental
standards are planned at the different stages of execution of the project, viz., design,
construction and operational phases.

Gaseous effluents:
 Hydrocarbons if needed to be vented will be routed to flare, or will be passed
through vent scrubber system wherever applicable.
 All the possible energy conservation measures and high efficiency machines
will be used for minimizing greenhouse gas generation.
 Since this plant is located within existing facilities, the Green belt is already
considered meeting statutory norms at total complex level.

Liquid effluent:
 All liquid effluents from the new facility shall be routed to the Waste Water
Treatment plant (WWTP) to meet the controlling local / central norms

Solid waste:
 Catalysts will be sent for recovery of precious metals or disposed to
authorized recyclers / TSDF facility for compliance to environmental
regulations.

Noise control:
 All the rotating machines and flare will be designed meeting the specified
noise limit
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1.17 Project Implementation Strategy and Schedule
Overall duration of four years (48 months) from the start of implementation has been
conceived. 6 months for BDEP package from the licensors, 36 months for mechanical
completion and 6 months envisaged for commissioning of the facilities.

1.18 Project Estimated Cost

1.18.1 Key Assumptions

The basic assumptions made for working out the capital cost estimate are as under:
a. Project would be implemented on conventional basis.
b. All costs are reflected in INR and all foreign costs have been converted into
equivalent INR using exchange rate of 1USD=Rs. 70.

1.18.2 Project Cost

Capital cost estimate including Working Capital Margin and Interest during
Construction (IDC) for the Usar Complex is Rs 6707.67 Cr.

1.19 Plot Plan

a) PDH PP Plant, Usar:
The proposed facilities have been located within the existing area available with GAIL
at USAR plant. The new facilities includes the following –

a. Process Units- PDH, PP

b. Utilities - Cooling Tower, UB, N2/IA/PA, RO-DM, CPU & ETP, Flare, Treated
water tanks, Fire water system
c. Storages - Mounded bullets, H2 bullets etc.
d. Building like MCR, Sub-Stations, Satellite Rack Rooms, Workshop, Warehouse,
Lab Building etc.
e. Polymer Warehouse
f. Construction facilities like Site offices, Const. Warehouse, Open storage yard
etc.

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 The following existing facilities will be dismantled for creating space for new facilities.
a. Cooling tower
b. Flare
c. WWTP
d. Propane & LPG loading Gantry
e. Cement Godown
f. Methanol UG Vessel
g. Open Storage Yard
h. CISF barracks near entrance

The following facilities will be augmented to cater to the requirements of upcoming

Project.
a. Switch Yard
b. Admin Building
c. Fire Water System
d. Fire Station

b) Propane Import Terminal, Uran:

The plot plan of Import Terminal consists of following facilities-
a. 2 nos. of Propane Double Wall Tanks
b. Process facilities like pumps, heaters etc.
c. Scrapper area for pipeline terminal
d. ETP, Flare, Treated water tanks, Fire Water system, Fire Station, IA/PA
plant etc.
e. Building like Workshop, Warehouse, Admin Bldg, Control Room, Sub-
Station, Canteen, First-Aid center etc.

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