IOC expects to run Panipat cracker full stream by March 2011

23 September 2010 08:26  [Source: ICIS news]

MUMBAI (ICIS)--State-run Indian Oil Corp (IOC) plans to ramp up production at its 857,000 tonne/year cracker in Panipat, Haryana state - currently operating at 50% - to full capacity by March 2011, company sources said on Thursday.

“We will also begin expansion of the petrochemical plants at the Panipat facility by early 2011,” one of the sources said.

The company needed to stabilise the grades of its petrochemical products and test the performance of the individual units before it could begin any expansion, the source added.

Through these expansions, IOC expected to double its revenue from the petrochemical business to Indian rupees (Rs) 60bn in 2010-2011, chairman of IOC BM Bansal said, according to news reports.

IOC aimed to capture a 20% market share of the Indian petrochemical business from the current 5% that it holds, Bansal was reported to have said.

The company had recently announced the sale of a 10% stake to raise Indian rupees 100bn which would help fund its expansion plans in Gujarat, Orissa and Tamil Nadu states.

While IOC was looking to acquire upstream assets overseas especially shale gas options, it also planned to bid for blocks in India once the Director General of Hydrocarbons completed its assessment of shale gas assets in the country, the source added.

($1 = Rs45.51)

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By: Priya Jestin

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