Hindustan Petroleum Corporation Ltd is close to finalising partners for the ambitious Rs 45,000-crore integrated petroleum complex in Andhra Pradesh and commence work on the project before the financial year end.
The Executive Director — PCPIR of HPCL, Mr O.P. Pradhan, said that the partners for the projects would include (without naming), public sector undertakings and at least two multinational corporations engaged in oil and gas business.
Speaking to media persons on the sidelines of a meeting hosted here by Assocham, Mr Pradhan said Total SA is among its potential partners. “We may have more than one foreign partner for this project. This could possibly be Saudi Aramco, who could provide crude supplies for the proposed refinery project,” he said.
Mr Pradhan said that they have been allotted 1,500 acres for the 15-million-tonnes per annum refinery (mtpa) cum petrochemical complex, which will include a cracker complex and aromatics manufacture facility, along with a captive power plant of about 350 MW. “We are seeking additional 1,000 acres, which will be useful factoring future plans and some other components for the project,” he said.
The corporation, according to Mr Pradhan, “is likely to close this financial year with revenues of about Rs 1,25,000 crore, up from Rs 1,08,000 crore, last year, and commission its 9 mtpa Bhatinda refinery during the current quarter. We will also complete the proposed expansion of the HPCL project at Vizag, which entails expansion from 8.5 mtpa to 15 mtpa by 2014.”
“We have decided on the project after considerable debate. It is far more financially viable to set up a complex like this in India than any other part of the world both from capex and opex point of view. As per estimates, such projects work out about 20-25 per cent cheaper than say in the US and Europe. In the latter, they have decided not to take up new petrochemical projects,” he explained.