26 July 2012 09:34 [Source: ICIS news]
By Ajoy K Das
KOLKATA (ICIS)--India’s Chennai Petroleum Corporation Limited (CPCL), an Indian Oil Corporation (IOC) Group company, will seek a strategic investor and technical collaborator for its proposed $7.13bn (€5.85bn) refinery and petrochemical complex, an official in Ministry of Petroleum said on Thursday.
A detailed project report and techno-commercial report has been commissioned and will be complete within the next three to four months and thereafter proposals will be made to prospective investors, the official said.
CPCL’s will build a 15m tonne/year refinery along with a downstream naphtha cracker and an aromatics complex at the Cuddalore Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR), in southern Indian ?xml:namespace>
The CPCL will be the second investor to the special zone, which was sanctioned by the Indian government, early this month.
IOC as the principal promoter of CPCL and also investing $6bn directly in constructing a refinery and petrochemical complex as an anchor at the another site, the Paradip PCPIR in eastern Indian coastal province of Orissa, will spearhead the search for a strategic investor for both the projects, the official said.
The initiative to woo investors to the two PCPIRs will be routed through the Indo-United Arab Emirates (UAE) Joint Task Force for the oil sector, which was set up during the course of bilateral dialogues between the two countries in May 2012.
The Task Force was headed by
Though final negotiations, approval and signing of agreement will be at the discretion of the board of directors of the respective Indian oil refiners, IOC will lead at the proposal stage since India-UAE bilateral cooperation agreements will be leveraged to attract foreign investments, he added.
Though officials in government declined to comment on the identities of specific foreign investors IOC sources said preliminary discussions with Qatar Petroleum (QP), Qatar Petrochemical Company (Qapco) and SABIC of Saudi Arabia for investments in the Paradip project had already been initiated.
The talks could be expanded to include the CPCL project as well, they added.
Nagarjuna Oil Limited (NOL), a joint venture of Nagarjuna Fertilizer Limited and Tamil Nadu Industrial Development Corporation (Tidco), has been chosen as the lead anchor investor for Cuddalore PCPIR.
NOL is already constructing a 6m tonne/ year refinery at Cuddalore entailing an investment of $1.72bn and the project is scheduled for commissioning in September 2013.
As part of the PCPIR, this project will be expanded to 9m tonne/year and include xylene, purified terephtalic acid (PTA) and propylene recovery units.
However, the company has not announced additional investments required.
CPCL operates two refineries, at Manali and Nagapattinam in Tamil Nadu, with combined capacity of 10.5m tonne/year with production of fuel, lubes, wax and petrochemical feedstock.
($1 = €0.82)
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