India’s HPCL-Mittal Energy to export PP to Pakistan in October

07 September 2012 11:49  [Source: ICIS news]

By Tahir Ikram

SINGAPORE (ICIS)--India's HPCL-Mittal Energy Ltd (HMEL) will start exporting polypropylene (PP) cargoes from its new plant to neighbouring Pakistan in October, an executive from a Pakistani petrochemicals distributor said on Friday.

Planet Petrochemicals Group chief executive Khurram Sayeed told ICIS that his company will be in charge of marketing HMEL’s products in Pakistan under an agreement signed on 24 August.

Sayeed said that Planet Petrochemicals initially plans to offer monthly volumes of 4,000 to 5,000 tonnes of PP from HMEL’s new 440,000 tonne/year facility at Bathinda in India's Punjab state.

The marketing agreement between the two companies will make HMEL the third Indian company, after Reliance Industries and Indian Oil Corp, to export PP to Pakistan, which has an annual import requirement of 300,000 tonnes of the polymer.

HMEL is a joint venture between Hindustan Petroleum Corp Ltd (HPCL) and Mittal Energy Investment - each with a 49% stake. The remaining 2% interest is held by financial institutions.

Planet Petrochemicals also plans to introduce HMEL’s petroleum coke and sulphur into Pakistan as and when necessary, Sayeed said, adding that government permission for importing these items from India has been granted.

Until recently, trade between the two nuclear-armed neighbours in southeast Asia had been held hostage to bitter relations, marred by three wars since 1947, when the two countries achieved independence from Britain.

“Trade will lead to better relations [between India and Pakistan], which in turn will encourage investments,” according to Sayeed, who said he spent two years to achieve this business “objective”.

Going forward, Sayeed said, the group will also like to facilitate import of gasoline and hi-speed diesel from India, but this is still subject to approvals by their respective governments.

Pakistan is in deficit of 1m tonnes of gasoline and 4.5m tonnes of hi-speed diesel on an annual basis, Sayeed said.

By: Tahir Ikram
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