SGFL goes for $10m CF plant sans ensuring market
Thursday, 16 April 2009
Sylhet Gas Field Ltd (SGFL) is going for a second condensate fractionation (CF) plant at Rashidpur in Bahubal of Habiganj without ensuring market of MS (motor spirits) products, informed sources said, reports UNB.
SGFL floated tender for setting up a 1,250-barrel-a-day-capacity CF plant, and received three bids.
As per SGFL, the selected EPC contract is to provide a conventional fractionation plant. The standard and logical practice is to analyse the condensate property and then finalise the design requirements.
However, the sources said the company prepared the design requirements for the plant well before receiving the analysis of condensate, which is to be fractionated into various products like MS, diesel and kerosene.
"Since there is no market for MS products, SGFL should not invest approximately $10 million for a new condensate plant at this stage," an expert said.
Due to change in the property of condensate, fractionating through the propossed plant would not produce marketable products to meet BSTI standards, particularly in respect of MS and kerosene, said one expert.
SGFL floated tender for setting up a 1,250-barrel-a-day-capacity CF plant, and received three bids.
As per SGFL, the selected EPC contract is to provide a conventional fractionation plant. The standard and logical practice is to analyse the condensate property and then finalise the design requirements.
However, the sources said the company prepared the design requirements for the plant well before receiving the analysis of condensate, which is to be fractionated into various products like MS, diesel and kerosene.
"Since there is no market for MS products, SGFL should not invest approximately $10 million for a new condensate plant at this stage," an expert said.
Due to change in the property of condensate, fractionating through the propossed plant would not produce marketable products to meet BSTI standards, particularly in respect of MS and kerosene, said one expert.