Haldia delays polyolefins turnaround until 2009

15 July 2008 10:32  [Source: ICIS news]

SINGAPORE (ICIS news)--India's second largest polyolefins producer Haldia Petrochemicals has once again delayed a two-month turnaround and expansion of its cracker and polyolefins plants, a source close to the company said on Tuesday.

 

The main reason for the latest delay was the prevailing strong margins in the market, the source said. 

 

The plants, located in Haldia, West Bengal state, were now expected to be shut down for maintenance and expansion by the end of the first quarter of 2009, it added.

 

The cracker complex was originally expected to be shut down in the fourth quarter of this year but the schedule was then postponed to early next year, to capitalise on the improving market sentiment, the company said.

 

Prices of PE and PP have surged in recent weeks in India on the back of high feedstock values and bullish market sentiment.

 

“Buying activity is quite good now, so the company wants to maximise margins,” the source said. “The new start-ups in the Middle East appear to have been delayed to early next year and are expected to trigger a price downturn only in late Q1 [first quarter] next year.”

 

The robust demand and high feedstock prices have prompted Indian producers to hike domestic prices of polyolefins six times in the last two months.

 

The facilities at Haldia consist of a 520,000 tonne/year cracker, a 260,000 tonne/year high density polyethylene (HDPE) unit, a 290,000 tonne/year linear low density PE/high density PE (LLDPE/HDPE) swing unit and a 211,000 tonne/year polypropylene (PP) plant.

 

The cracker capacity will be expanded to 670,000 tonnes/year, while the capacity of the LLDPE/HDPE swing plant and HDPE plant will be raised to 368,000 tonnes/year and 320,000 tonnes/year, respectively. 

 

The capacity of the PP plant will be increased to 320,000 tonnes/year.

 

India's largest polyolefins producer is Reliance Industries.

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By: Prema Viswanathan
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