India’s Essar plans 2 PE units with INEOS’ aid

01 August 2008 20:52  [Source: ICIS news]

NEW DELHI (ICIS news)--India’s Essar Gujarat Petrochemicals Limited (EGPL) plans to set up  two polyethylene (PE) plants with a total capacity of 800,000 tonnes/year in collaboration with INEOS Technologies, a government official said on Friday.

The official said the government has approved two technical agreements between EGPL and the UK’s INEOS for the PE units at Vadinar in Jamnagar district of Gujarat State.

The units form part of a plan by EGPL to set up a propylene derivatives complex, an olefins complex and an aromatics complex downstream from Essar Oil Limited’s (EOL’s) refinery complex at Vadinar.

In its technical collaboration applications submitted to the government, EGPL said it was aiming to wrap up the entire petrochemical project “with aggressive completion schedule of April 2012”.

The first PE plant would be a dedicated 400,000 tonnes/year high density polyethylene (HDPE) plant. The second plant would be a swing facility with a capacity of 400,000 tonnes/year of linear low density polyethylene (LLDPE)/HDPE.

The government has already approved company’s proposal to set up two polypropylene (PP) units with total capacity of 900,000 tonnes/year in technical collaboration with INEOS USA.

EGPL is part of Essar group, whose flagship Essar Oil Limited (EOL) is expanding its refinery to 16m tonnes/year from 10.5m tonnes/year. EOL’s wholly owned subsidiary Essar Oil Vadinar Limited (EOVL) is setting up a new refinery train of 18m tonnes/year at the same site.

The expanded refinery complex with a capacity of 34m tonnes/year is scheduled for start-up in 2010. The refinery complex would thus provide feedstock and intermediates to petrochemical complexes.

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By: Naresh Minocha
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