26 December 2012 07:19 [Source: ICIS news]
KOLKATA (ICIS)--Indian Oil Corporation Limited (IOC) will construct individual petrochemical plants in phases linked to its $6bn refinery scheduled for commissioning in 2013, instead of a complex with mixed product portfolio entailing investments of $4bn, a senior company official said on Wedesday.
“In the first phase or in about 36 months from commission of the refinery, the company would add 600,000 tonne/year polypropylene plant at investment of $1bn,” the official said.
“Adding a 1.2m tonne/year paraxylene plant and 600,000 tonne/year styrene plant to the grass-root refinery might be considered at a later date,” the official added.
The construction of a standalone polypropylene plant linked to the refinery at Paradip was part of IOC’s plans to put up similar capacity plants at the company’s existing refineries at Panipat in northern India and western province of Gujarat, according to the official.
IOC’s first coastal refinery of 15m tonne/year capacity located at the Paradip Petroleum, Chemicals, Petrochemicals Investment Region (PCPIR) in eastern Indian province of Orissa was to start commercial production next year and was currently close to mechanical completion.
IOC’s revised plans to add petrochemical plants piecemeal to the refinery was prompted by delays in clinching a strategic foreign investor for an integrated petrochemical complex and also by the oil refiner-marketers’ strategy for sustaining expansion of petrochemical capacity to offset continued pressures on refining margins, the official said.
Earlier this year, as part of bilateral dialogue under the aegis of India-Qatar joint co-operation in oil sector, IOC had proposed strategic investment partnerships with Qatar Petroleum (QP) and Qatar Petrochemical Company (Qapco) for implementing a petrochemical complex at the Paradip refinery.
The decision on the construction of a polypropylene plant will not impact continuation of negotiations for strategic foreign investment for a petrochemical complex since configuration and product portfolio of the complex could be suitably changed once a deal with a foreign investor was concluded, the official said.
($1 = €0.76)
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