Hits And Misses For Indian Projects

Business, India, Olefins, Polyolefins, Projects

By Malini Hariharan

The Indian project scene continues to see some hits and misses.

Among the projects on track, sources at Gail (India) told the blog last week that expansion of its Pata cracker and a new polyethylene (PE) plant will be completed in Q1 2014.

Mechanical completion is due in December 2013,, while commissioning is scheduled for February 2014.

The new 450,000 tonnes/year swing high-density PE (HDPE)/linear-low density PE (LLDPE) plant is likely to produce around 100,000 tonnes/year of LLDPE. The grade slate is planned to be the same as the current plant.

The company’s joint-venture cracker project in Assam, though, continues to be delayed and mechanical completion is now likely to take place only in 2014.

The small 220,000 tonnes/year cracker and derivatives project has been facing many problems including a steep escalation in costs. Lack of experienced people at the site is another problem.

Gail is also looking forward to the start-up of ONGC Petro-Additions Ltd’s (OPaL) 1.1m tonnes/year cracker project at Dahej. The joint-venture cracker project includes a 340,000 tonnes/year HDPE unit, a 340,000 tonnes/year polypropylene (PP) unit and two swing HDPE/LLDPE plants, each of 360,000 tonnes/year capacity.

As written by the blog earlier, this project has seen many delays and the earliest that it is likely to start is 2014-15. Construction of the cracker is substantially ahead of the downstream plants, but the commissioning will have to wait as it will be difficult for OPaL to find a ready buyer for such huge volumes of olefins. Additionally, the company is also not building the infrastructure to handle olefin exports.

Gail will have marketing rights to about 38% of the polymer production by OPaL. This includes 400,000 tonnes/year of PE and 130,000 tonnes/year of PP.

Completion of these three projects would raise Gail’s total polymer volumes to about 1.7m tonnes in 2015.

The Indian market should be able to absorb a fair bit of these volumes but the company would like to prepare for exports.

Among other projects, HPCL-Mittal Energy Ltd’s (HMEL) new 440,000 tonnes/year PP plant is likely to start operations in April. The plant is downstream of a new 9m tonnes/year refinery that is in the process of being commissioned.

Start-up of this plant and Mangalore Refinery and Petrochemicals Ltd’s (MRPL) 440,000 tonnes/year plant in H2 would result in higher exports of Indian PP, unless there is a substantial improvement in demand. PP exports from the country are projected to hit 1m tonnes for the year ending 31 March 2012, as demand growth has been lacklustre through most of 2011.

We will review of other Indian projects later this week.

PREVIOUS POST

Five Essentials For Planners

13/01/2012

By John Richardson POLYETHYLENE (PE) industry planners need to factor in the fol...

Learn more
NEXT POST

IOC Defers PX/PTA, Proceeds With Acetic Acid, Butene-1

17/01/2012

By Malini Hariharan The blog continues with a review of Indian projects. State-o...

Learn more
More posts
Developing world polymers demand unlikely to see quick rebound
20/09/2020

By John Richardson THIS IS a tragedy in the genuine sense of the word, not just in the so-often misu...

Read
China’s policy dilemma: raising local demand while protecting exports
13/09/2020

  By John Richardson IN THIS Western-centric world, a huge amount of ink is split over the cons...

Read
China’s polyethylene demand good so far in 2020 but beware of risks ahead
10/09/2020

Note that all the comparisons in this post are on a year-on-year basis unless otherwise stated By Jo...

Read
Ah, I see: China’s booming demand mystery a little closer to being solved
08/09/2020

  Note that all the data comparisons below are on a year-on-year basis By John Richardson THE P...

Read
The China polyester mystery continues in a world turned upside down
07/09/2020

By John Richardson SOMETHING very strange is happening in China’s polyester industry which has eno...

Read
China will struggle to boost local retail sales during rest of 2020 with export outlook uncertain
04/09/2020

By John Richardson IF IT were easy, then there would be an oversupply of owners of large yachts in M...

Read
Pandemic and the developing world: No quick and easy solutions
01/09/2020

By John Richardson POVERTY alleviation in low-income developing countries could be set back a decade...

Read
The pandemic and petrochemicals demand: a whole new approach is required
30/08/2020

By John Richardson MONITORING demand has never been harder because of the pandemic. One of my collea...

Read

Market Intelligence

ICIS provides market intelligence that help businesses in the energy, petrochemical and fertilizer industries.

Learn more

Analytics

Across the globe, ICIS consultants provide detailed analysis and forecasting for the petrochemical, energy and fertilizer markets.

Learn more

Specialist Services

Find out more about how our specialist consulting services, events, conferences and training courses can help your teams.

Learn more

ICIS Insight

From our news service to our thought-leadership content, ICIS experts bring you the latest news and insight, when you need it.

Learn more