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BOO model for industrial gas supply: Not fool proof
Jul 27:
Setting up Build Own and Operate (BOO) industrial air production facilities attached to refineries can seem to be a safe business
8But is it?
8In Paradeep refinery, a BOO arrangement took years to sort out the snags as the air supply facility come up earlier than the refinery itself and fixed costs plus returns had to be paid by IOC for several months without taking any inputs.
8A similar BOO model to supply hydrogen gas to a big refinery expansion was commissioned this year
8But high feedstock prices and the lag in passing over energy charges to the refinery owner has dragged down the multinational's profits by quite a few basis points
8The BOO model is safe but not foolproof
Click on Reports and Details below for more
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8But is it?
8In Paradeep refinery, a BOO arrangement took years to sort out the snags as the air supply facility come up earlier than the refinery itself and fixed costs plus returns had to be paid by IOC for several months without taking any inputs.
8A similar BOO model to supply hydrogen gas to a big refinery expansion was commissioned this year
8But high feedstock prices and the lag in passing over energy charges to the refinery owner has dragged down the multinational's profits by quite a few basis points
8The BOO model is safe but not foolproof
Click on Reports and Details below for more
