Indian Oil to restart Vadodara LAB plant by 29 July

24 July 2013 08:44  [Source: ICIS news]

SINGAPORE (ICIS)--Indian Oil is expected to restart its linear alkylbenzene (LAB) plant at Vadodara in the state of Gujarat by 29 July after a month-long turnaround, a source close to the company said on Wednesday.

“The plant actually restarted on 15 July after undergoing maintenance but went down again on 17 July because of a technical hitch,” the source said.

The shutdown at the 120,000 tonne/year plant has severely tightened supply in the Indian market, resulting in virtually no spot export availability in July.

Furthermore, the extended shutdowns at Tamilnadu Petroproducts Ltd’s (TPL) 120,000 tonne/year plant near Chennai and  Reliance Industries’ 60,000 tonne/year plant at Vadodara has caused inventory levels of LAB in India to decline to around 5,000 tonnes in July, down from 8,000 tonnes in June, market players said.

The TPL plant restarted on 13 July after a two-month long shutdown but the Reliance unit has yet to restart.

LAB is an intermediate in the production of surfactants and detergents.

India has an installed LAB capacity of 530,000 tonnes/year, an industry source said. Consumption of LAB totalled 500,000 tonnes/year in 2012, creating a shortfall of 40,000 tonnes/year.

By: Prema Viswanathan
+65 6780 4359

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