08 August 2013 09:42 [Source: ICIS news]
KOLKATA (ICIS)--India’s Bharat Petroleum Corporation Limited (BPCL) is planning a second petrochemical plant in collaboration with ONGC Limited alongside its joint venture (JV) project with LG Chem at the Kochi refinery in southern Indian, a company official said on Thursday.
The second petrochemical project will be independent of the plant to be built in collaboration with LG Chem but based on projected surplus feedstock from BPCL’s Kochi refinery which was currently being expanded to 15.5m tonne/year from 9m tonne/year, the official said.
The expansion entails an investment of $3.32bn (€2.49bn) and is scheduled for completion in 2015, the official added.
Last year BPCL had proposed roping in ONGC Limited and GAIL India Limited as partners in the joint venture project with LG Chem.
But while LG Chem was not open to the idea of including more partners in its venture with BPCL, ONGC Limited was not inclined to be a third partner in the venture with minority equity and hence BPCL was in talks with ONGC for a separate project for optimal utilisation of the expected feedstock production from its expanded Kochi refinery, the official explained.
The official, however, said that investments for the second project was yet to be decided since configuration of the second plant was currently being worked out and also the amount of feedstock that would be available from the grass-root refinery.
The BPCL-ONGC plant will be configured with downstream processing capacities so as to also utilise part of the 500,000 tonne/year of propylene produced by the BPCL-LG plant, he said.
The construction of the second plant will start soon after the completion of the refinery in 2015 and BPCL-LG’s plant in 2016, the official said.
($1 = €0.75)
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