Indian Oil ramps up PE unit, runs cracker, PP unit at low rates

11 August 2011 11:22  [Source: ICIS news]

SINGAPORE (ICIS)--State-owned Indian Oil has ramped up the production rate at its polyethylene (PE) plant to above 70% this week, while operating its cracker and polypropylene (PP) unit at 50-60% capacity, a company source said on Thursday.

Indian Oil has been operating its 650,000 tonne/year high density PE (HDPE)/linear low density PE (LLDPE) swing plant at below 50% since early July, producing only HDPE film and blow moulding grade because of a shortage in cyclohexane (CX).

“Now that we have secured CX, we can start to produce LLDPE,” the source said.

The producer is running its 657,000 tonne/year naphtha cracker and 600,000 tonne/year PP plant at 50-60% capacity because of a technical problem at the cracker, which has reduced the company’s propylene output.

“The problems at the cracker and the PP plant will persist until the [company’s] scheduled turnaround [at all the facilities] in October, when we will solve [them],” the source said.

With Indian Oil’s return to the LLDPE market, the supply situation is expected to improve, local players said.

The domestic spot prices of LLDPE film on 11 August are at Indian rupees (Rs) 84.50/kg DEL (delivered) Mumbai, while import offers of material from the Middle East were at $1,440/tonne CFR (cost & freight) Mumbai, local traders said.

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By: Ong Sheau Ling
+65 6780 4359

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