India's Essar to set up EB-SM with Lummus tech

08 September 2008 17:42  [Source: ICIS news]

NEW DELHI (ICIS news)--India’s Essar Gujarat Petrochemicals Limited (EGPL) wILL set up a rupees (Rs) 9.99bn ($224m) integrated ethyl benzene-styrene monomer (EB-SM) plant as part of its petrochemical complex slated for start-up by April 2012 at Vadinar, a government official said on Monday.

The official said the plant, in the Jamnagar district of Gujarat,  would have capacity to produce 521,000 tonnes/year of EB, which would serve as feed for SM capacity of 500,000 tonnes/year.

The government has approved EGPL’s technical collaboration with Lummus Technologies of the US for this plant.

EGPL would pay total fee of $11.47m to Lummus towards technology licensing and provision of the basic engineering package.

An industry analyst said EGPL is well placed to become the first Indian company to produce styrene monomer through the petrochemical route.

Reliance Industries Limited (RIL), Supreme Petrochem Limited (SPL), GAIL and Indian Oil Corporation (IOC) had shelved or deferred respective styrene projects for various reasons.

Indian demand for styrene is met entirely through imports.

($1 = Rs44.66)

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By: Naresh Minocha
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