24 June 2013 07:18 [Source: ICIS news]
KOLKATA (ICIS)--Indian Oil Corp (IOC) has firmed up an investment of around $50m (€38m) to construct a polypropylene (PP) plant linked to its Paradeep refinery in eastern Indian province of Orissa, a company official said on Monday.
“The PP plant of around 600,000 tonne/year capacity would mark the beginning of ultimately having an integrated petrochemical project linked to the refinery,” the official said.
The Paradeep refinery is close to completion and is scheduled to begin production in the last quarter of 2013, the official said.
IOC, India’s largest oil refiner-marketer, is readying its 15m tonne/year refinery for commercial operation.
The refinery involves an investment of about $5bn and is an anchor project for the Petroleum, Chemicals and Petrochemical Investment Region (PCPIR) at the eastern coastal port town Paradeep on the Bay of Bengal.
According to the company official, the original refinery project had been conceived together with a $4bn linked integrated petrochemical complex but the latter was pushed back in the priority list of the company owing to poor market conditions and apprehensions of spreading resources too thin.
“However, market conditions have changed since then,” the official said.
Downstream value addition plants linked to a refinery would create incremental value for the refiner, and the company has decided to begin constructing petrochemical plants in a piecemeal manner, the official added.
An addition of more downstream plants over a period of time would follow the construction of the PP plant, with a goal to rope in a strategic investor for a future integrated petrochemical complex linked to the grassroot refinery and hence serving as an anchor for the entire PCPIR, the official said.
In 2012, IOC initiated dialogue and proposed strategic investment partnerships with Qatar Petroleum (QP) and Qatar Petrochemicals Co (Qapco) for implementing the petrochemical complex at Paradeep but no information on progress of such preliminary talks were available from the company.
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