Indian Oil Corp ramps up production at PP plant

16 December 2010 09:01  [Source: ICIS news]

SINGAPORE (ICIS)--State-owned Indian Oil Corp (IOC) has ramped up operating rates at its polypropylene (PP) facility in Panipat to 60%, a source close to the company said on Thursday.

The 600,000 tonne/year plant had been running at 40% for around three days earlier in the week due to a propylene shortage, the source added.

“There was some issue with the purity of the propylene coming out of the naphtha cracker which has now been resolved,” the source said.

The company’s 857,000 tonne/year naphtha cracker at Panipat provides ethylene and propylene feedstock to its polyethylene (PE) and PP plants.

Both plants are running at 60% capacity. “But IOC plans to achieve full output at the plants by March next year,” the source said.

The reduction in IOC’s operating rates has restricted PP supply in India. The tightness in the Indian PP market, along with the increase in propylene and naphtha costs, prompted Indian producers to hike domestic prices of PP by Indian rupee (Rs) 1-1.50/kg ($0.02-0.03/kg) late on Wednesday to Rs82-84/kg on a delivered basis, producers said.

IOC’s Panipat facility includes a 650,000 tonne/year PE plant.

Other major PE and PP producers in India include Reliance Industries and Haldia Petrochemicals.

($1 = Rs45)

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By: Prema Viswanathan
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