ONGC to mull Kakinada complex configuration

25 June 2007 16:26  [Source: ICIS news]

NEW DELHI (ICIS news)--India’s Oil and Natural Gas Corporation (ONGC) would shortly evaluate the configuration options for its petrochemical and refining units of its proposed export-focused refinery at Kakinada in Andhra Pradesh, it said on Monday.

 

ONGC chairman and managing director RS Sharma said that Engineers India Limited would submit its draft detailed feasibility report (DFR) on the refinery in July. The refinery’s crude processing capacity had been scaled up to 15m tonnes/year from 7.5m tonnes/year to make the project viable.

 

He said the refinery would utilise imported crude and would be located in a Special Economic Zone (SEZ) at Kakinda.

 

The project would be promoted by a start-up named Kakinada Refinery and Petrochemicals Ltd (KRPL) in which ONGC would participate indirectly through its subsidiary, Mangalore Refinery and Petrochemicals Ltd (MRPL).

 

MRPL would hold 46% in KRPL, 51% would be split between Infrastructure Leasing and Financial Services Ltd and Kakinada Sea Ports Ltd. Andhra Pradesh Industrial Investment Corporation would subscribe to the balance of 3%.

 

MRPL managing director R. Rajamani told ICIS news the EIL study would recommend the comparative viability of different stand-alone refining and petrochemical refining options. This would help ONGC decide on the product slate of the proposed project.

 

ONGC might also go for petrochemical units linked to refinery streams in the second phase of the project.

 

By: Naresh Minocha
+65 6780 4359

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