UK's BP, Swiss firm Kolmar Petrochemicals, Mitsubishi Corp, Marubeni Corp and Mitsui & Co have shown interest in buying paraxylene from a planned project by Mangalore Refinery and Petrochemicals Ltd (MRPL). Paraxylene is a raw material used to make polyester and plastics. MRPL will finalise the buyer in the next six months.
Pricing of the output and any possibility of these firms buying equity in the plant is yet to be discussed. State refiner MRPL will own 3% of the new firm, while its parent company Oil and Natural Gas Corp, will invest in 46% stake. The proposed plant would produce about 920,000 tpa of paraxylene from 2010, using naphtha produced at MRPL's 193,800 bpd refinery in southern India. MRPL's naphtha exports pegged at around 720,000 tpa will substantially reduce once the new project comes on stream.