Bharat Petroleum Corporation (BPCL) has entered into a joint venture agreement with Korea’s LG Chem to set up a petrochemical plant with an investment outlay of Rs 6000 crores. The petrochem plant will be located adjacent to its refinery in Kochi as part of plans of backward integration. The new plant will produce superabsorbent polymers, acrylic acid, acrylate, and butanol - using 300,000 tons of propylene produced by the Petrochemical Fluid Catalytic Cracker (PFCC) unit of Kochi Refinery. Completion of the petrochemical fluid catalytic cracker (PFCC) will coincide with completion of the refinery expansion in 2015-16.
The joint venture would invest up to Rs 6,000 crore as debt and equity to set up the plant beginning early next year.