IndianOil eyes Rs 18k cr profit from petrochem
New Delhi   14-Mar-2008
IndianOil, India's flagship energy major has projected a turnover of Rs 18,000 crore from its petrochemicals business by the year 2011-12. According to company sources, the company is planning to become a leading petrochemicals player in the country within a short period of time." These initiatives are designed to project IndianOil among the top three petrochemical players in South East Asia in the long term headed. At present, IndianOil is implementing a master plan envisaging Rs 30,000 crore investments in petrochemicals by the year 2011-12. These projects will utilise product streams from its existing refineries, thereby achieving better exploitation of the hydrocarbon value chain. According to company officials, IndianOil will have projects from low investment, high value such as MTBE (methyl tertiary butyl ether) and Butenel at its Gujarat refinery. The company has also set up linear alkyl benzene (LAB0 plant at the same plant in Gujarat and an integrated paraxylene/ purified terephi halicacid plant at Panipat. Also, a naphtha cracker complex with downstream polymer units is coming up at Panipat refinery and is scheduled for commissioning in 2009. IndianOil is also coming up with its proposed refinery cum petrochemicals complex at Paradip, on the east coast of lndia. As regards other initiatives in the petrochemical business, a memorandum of understanding (MoU) has been signed with the Haryana State Industrial & Infrastructure Development Corporation for launching a special purpose vehicle for development of a petrochemicals hub at Panipat Likewise, plans are afoot to set up a refinery-cum-petrochemicals unit at Paradip. In addition, IndianOil has also in-, fused Rs 150 crore at par to-; wards acquisition of equity in Haldia Petrochemicals Ltd (HPL) as a further step towards expansion its petrochemical business. Moreover, the company has entered into an agreement with the Government of West Bengal for developing a petroleum, chemicals, and petrochemicals investment region at Haldia. As part of the agreement, Indian Oil will conduct techno economic feasibility study for, various projects, including an integrated Greenfield 15 MMTPA refinery cum petrochemical complex, while West Bengal will facilitate development of necessary infrastructure, including a deep seaport to handle ULCC (ultra large crude carriers).