Bharat Petroleum Corporation Ltd (BPCL) is to sign a deal with UK based LP Chemical for its maiden foray into petrochemicals. Negotiations are underway for the JV that plans to set up a petrochemical plant by 2015 at its Kochi refinery in Kerala.
BPCL plans to invest about Rs 13,000 crore, while Rs 6,000 crore will be contributed by LP Chemical. Talks are underway between BPCL and Kerala government for concession on the investment in the planned petrochemical unit.
This September, BPCL had announced the company’s plans to spend Rs 40,000 crore in the next five years to set up a petrochemical plant at the Kochi refinery to produce niche products, expand the capacity of existing refineries, gas marketing and exploration and production.BPCL is looking at producing 500,000 tpa of propylene derivatives. It is also working on a pre-feasibility report to set up a liquefied natural gas terminal, with an investment of around US$1 bln (Rs 4,700 crore). The terminal will have a capacity of 5-6 mln tons and it is working on two locations, one on the east coast and the other on the west. BPCL also plans to expand its Kochi and Mumbai refineries.