HPCL-Mittal set up $3 bn petrochemical unit in Bhatinda, India

HPCL-Mittal to set up $3 bn petrochem unit in Bhatinda, India

5:39 AM, 8th May 2017
A file photo of HPCL-Mittal’s Guru Gobind Singh oil refinery near Bhatinda in Punjab. © Reuters
A file photo of HPCL-Mittal’s Guru Gobind Singh oil refinery near Bhatinda in Punjab. © Reuters

NEW DELHI, INDIA: HPCL-Mittal Energy Limited (HMEL) said that it will invest about $3 billion in setting up a petrochemical complex at its Bhatinda refinery in Punjab, India.

HMEL is a joint venture between state-owned Hindustan Petroleum Corporation Limited (HPCL) and Mittal Energy Investment Pte Ltd, Singapore, an NRI steel tycoon Lakshmi N Mittal company

HMEL plans to set up an up to 1.7-million tonne naphtha cracker unit to produce basic raw material that goes into the making of plastics.

"It will be a 1.2-million tonne plant, expandable to 1.7 mt," said M K Surana, HPCL chairman and managing director.

Though setting up a petrochemical plant takes up to four years, HMEL plans to fast-track the process to build it in lesser time.

"We have land and other infrastructure at the Bhatinda refinery," he said, adding that the project will be formally announced shortly after investment approvals.

He said the $350 million expansion of Bhatinda refinery capacity to 11.25 mt per annum from the current 9 mt will be completed next month.

The refinery has taken its first 45-day maintenance shutdown to complete hooking up of the new units, he said, adding that additional volumes will cater to growth in demand in northern India.

This will be HPCL's first petrochemical plant in Northern India. The company has refineries in Mumbai and Visakhapatnam.

HPCL and steel baron Mittal are equal partners in the Bhatinda refinery in Punjab. HPCL and Mittal Investment Sarl hold 48.94 per cent stake each in HMEL while the balance is with financial institutions.

HPCL is investing Rs 45,000 crore by 2020 for expansion of its Mumbai and Visakhapatnam refineries as well as augmenting its marketing infrastructure.

It is investing Rs 4,199 crore in expanding its Mumbai refinery capacity to 9.5 mt per annum from the current 6.5 million metric tonnes per annum (mmtpa).

It is lining up another Rs 17,000 crore in expanding Visakhapatnam refinery capacity to 15 mmtpa, from 8.3 mtpa currently.

The investments will also help the company produce "products conforming to Euro VI" emission specification, he said.

© PTI News 



Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News

Gevo signs 5-year isooctane supply agreement with HCS

ENGLEWOOD, US: Gevo Inc (GEVO) has entered into a supply agreement with HCS Holding GmbH (HCS) to supply renewable isooctane under a five-year offtake ...

Read more
Covestro completes sustainable, affordable housing model

LEVERKUSEN, GERMANY: Covestro AG together with industry partners, government agencies and society, is developing models of affordable housing and carr ...

Read more
BASF provides eco-efficiency analysis of water-based inks, adhesives

LUDWIGSHAFEN, GERMANY: BASF’s water-based resins for inks and adhesives in flexible packaging are an economically compatible and environmentally ...

Read more
Researchers create shape-memory, super elastic aerogels

MISSOURI, US: Polymeric aerogels are nanoporous structures that combine some of the most desirable characteristics of materials, such as flexibility a ...

Read more
Total acquires PitPoint, strengthens natural gas vehicle fuel sector

PARIS, FRANCE: Total SA is acquiring the Dutch company PitPoint BV, Europe’s third-largest provider of natural gas vehicle fuel.  PitPoint ...

Read more
New promising method to recycle carbon fibre composites

PULLMAN, US: Washington State University (WSU) research team for the first time, has developed a promising way to recycle the popular carbon fibre pla ...

Read more
www.worldofchemicals.com uses cookies to ensure that we give you the best experience on our website. By using this site, you agree to our Privacy Policy and our Terms of Use. X