Indian Oil to invest Rs 34,000 crore on petrochemical complex

After completing construction of its 15-million tonne crude oil refinery at Paradeep, Indian Oil Corporation Ltd (IOCL) is now eyeing to fast track its petrochemical complex coming up at the same location.

IOCL is investing Rs 34,000 crore on the petrochemical complex, roughly the same amount it spent on the refinery. Though IOCL had conceptualised the oil refinery and petrochemical complex at the same time, the petrochemical complex was kept in abeyance due to recession.

The entire petrochemical complex is slated to be commissioned by 2021. The first unit of this complex -- the polypropylene unit is scheduled to be completed by December next year. The unit estimated to cost Rs 3,150 crore got the investment approval of IOCL board in March 2014. Subsequently, Dharmendra Pradhan, Union minister for petroleum & natural gas, laid the foundation stone for the polypropylene unit in November 2014.

According to Sanjiv Singh, director (refineries), IOCL, the oil public sector undertaking (PSU) has commenced piling work on the unit. The polypropylene unit would have a capacity of 7,000 kilo tonne per annum (ktpa) and would be integrated with the oil refinery.

The polypropylene unit would make use of Spheripol Technology from Basell, Italy. The unit will be capable of producing different grades of polypropylene but will commence with production of only homo grade initially. The major facilities envisaged under the project are coker liquefied natural gas (LPG) treater unit, warehouse for polypropylene storage and other associated facilities like flare and cooling tower.

Polymer units feel the polypropylene complex would be a huge boost to the local units, currently dependent on raw material imports from Haldia and Surat.

“The polypropylene unit would provide easy access of raw materials to the units located at the plastic, polymer & allied cluster at Balasore and also for the units to come up at the plastic park proposed at Paradeep. The units can save costs on sourcing the raw materials locally”, said Amit Behera, convenor, North Odisha Chamber of Commerce & Industry.

IOCL, meanwhile, is taking up detailed feasibility study for 325 ktpa glycol project estimated to cost Rs 3,150 crore. The detailed feasibility report is expected by April 2016. This plant is targeted for commissioning by November 2019.

Two more projects have been planned for the petrochemical complex -- 1,200 ktpa purified terephthalic acid (PTA) plant and petcoke gasification-based synthetic ethanol plant. Both projects would, together, cost IOCL Rs 28,000 crore and are due to be commissioned by September 2021.

With the availability of mono ethylene glycol (MEG) and PTA from these units, downstream industries like polyester chips, fibers, PET (polyethylene terephthalate) grade chips, PET film grade chips and polyester industrial yarn can be developed.