The Hindu Business Line : ONGC aims at better balance in petrochem distribution

Though the foundation stone laying ceremony for the complex was postponed due to inclement weather on Friday, the petrochemicals complex — when it materialises — would be the first of its kind in the southern peninsula to produce petrochemical building blocks such as paraxylene and benzene. This will help remove the freight handicap of southern consumers. Apart from this, the complex will facilitate advancement of the domestic petrochemical industry with broadbasing of the supply sources to the Indian consumers.

A press backgrounder released by the company here said that India with 15 per cent of the global population constitutes just 2 per cent of the world petrochemicals capacity. This is in sharp contract to the 12 per cent plus growth rate, which the country has set sights on. This calls for augmented supplies of energy products, including petrochemicals.

aromatics complex

The integrated aromatics (petrochemicals) complex will produce paraxylene and benzene. The naphtha generated in the Mangalore Refinery and Petrochemicals Ltd (MRPL) will be upgraded to paraxylene in this aromatics complex. It is expected to produce 0.95 million tonnes per annum (MTPA) of paraxylene and 0.15 MTPA of benzene here.

Quoting the statistics, it said that the paraxylene demand in the country is more than two MTPA, and it is expected to grow more than 7 per cent every year. The supply position is estimated to lag this demand for quite a few years to come making for a comfortable market, it said.

Considering the global consumption of paraxylene at about 22 MTPA in 2005, even one MTPA paraxylene in addition to the existing capacity will still leave behind some shortage of the isomer.

Paraxylene, the preferred isomer, is targeted in the complex. Benzene, which is in large demand, comes out as a by-product and further adds value.

A combined investment of Rs 13,000 crore has been approved by ONGC for the refinery upgradation at MRPL and for petrochemicals complex, the backgrounder added.

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