The Hindu Business Line : IOC, CPCL looking at 15 mt refinery, cracker unit

Output hike
To raise propylene output from its refinery from about 30,000 tonnes a year now to 80,000 tonnes.
The project cost has been put around Rs 300 crore.

MR K.K. ACHARYA

Chennai , Aug. 2

Indian Oil Corporation and its subsidiary, Chennai Petroleum Corporation Ltd, together may put up a 15 million-tonne refinery and an aromatics-cum-naphtha cracker project at the Ennore petrochemicals complex, it is reliably learnt. The project could cost around Rs 33,000 crore.

It is understood that officials from the oil companies gave a presentation to the Tamil Nadu Chief Secretary, Mr L.K. Tripathy, about the proposed project.

When asked for confirmation, the CPCL Managing Director, Mr K.K. Acharya, said the project was in its preliminary stages.

He said the project was similar to the one that IOC was putting up at Paradip (where the oil major is building a 15-mtpa refinery, facilities to produce paraxylene, polypropylene, styrene and a naphtha cracker unit).

SPV on cards

The project might be put up by an special purpose vehicle (SPV) in which there would most probably be a third partner too.

Earlier, IOC-CPCL intended to put up a 2.5 mtpa LNG terminal and regassification plant at the Ennore complex.

The Hinduja group had shown interest in putting up a power plant as a part of the project. But the project has been given up because of high LNG prices.

The proposed refinery-cum-petrochemicals plant could well be IOC's alternative investments plan for Tamil Nadu.

Propylene expansion

Meanwhile, CPCL, having shelved its own polypropylene project because of rising project costs, has planned to raise its propylene production from its refinery from about 30,000 tonnes a year now to 80,000 tonnes. The project for this could cost about Rs 300 crore, Mr Acharya said.

He said that the polypropylene project was given up because the cost of the project had gone up — Rs 1,500 crore from the initial estimate of Rs 1,100 crore.

At this level, a 1,50,000-tonne polypropylene project is not viable.

However, propylene production could be raised up to the potential of 80,000 tonnes, Mr Acharya said.

More Stories on : Petroleum | New Projects

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page