12 July 2012 12:09 [Source: ICIS news]
LONDON (ICIS)--India’s Bharat Petroleum Corporation (BPCL) and South Korea’s LG Chem plan to build a fluid catalytic cracker (FCC) adjacent to BPCL’s Kochi refinery complex in India’s Kerala state, BPCL said on Thursday.
It would be the “launch pad” for BPCL’s diversification into petrochemicals, India’s second largest publicly-owned oil marketing company said.
The companies have signed a memorandum of understanding (MoU) for the creation of the project joint venture.
The plant would produce 500,000 tonne/year of propylene and its construction would be dove-tailed with a larger expansion of the Kochi refinery. The FCC unit is slated for completion in the next four years, BPCL said in a statement on the Bombay Stock exchange.
BPCL said it is investing Indian rupees (Rs) 140bn ($2.52bn) at the Kochi refinery over the next five years. The expansion into petrochemicals would cost Rs40-50bn, it added.
($1 = Rs55.53)
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