04 October 2013 09:36 [Source: ICB]
Indian Oil Corp (IOC) will construct a 1m tonne/year acetic acid plant in Gujarat worth $800m (€592m), in collaboration with UK’s BP, an official from the Indian energy firm said.
IOC and BP had signed a memorandum of understanding (MOU) last year on the greenfield project, the official said.
The proposed plant slated for start-up in 2015-2016 will use BP’s proprietary process technology that will use petcoke as feedstock to produce acetic acid, the official said.
Last year, IOC had commissioned a coker unit at its existing 13.7m tonne/year refinery at the site to produce 1m tonnes/year of petcoke, the official said.
BP’s equity participation in the acetic acid plant project has yet to be determined, the IOC official said.
The current demand-supply gap in India’s acetic acid market is estimated at 600,000 tonnes/year, which is being met by imports.
This gap is expected to rise to 1m tonne/year by 2016, the IOC official said, adding that the IOC-BP plant should help address the acetic acid supply-demand mismatch.
Meanwhile, IOC announced in August a plan to expand the capacity of its Gujarat refinery to 18m tonnes/year. This should provide scope to increase the planned acetic acid production by the IOC-BP joint venture, the official said.
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