Rising refinery capacity under construction in India has raised doubts about the feasibility of Mangalore Refinery and Petrochemicals Ltd.'s (MRPL) 15 mln tpa refinery in Mangalore. MRPL, which is 71.62% owned by Oil and Natural Gas Corporation, already operates a 9.69 mtpa refinery at Mangalore, capacity of which is being expanded to 15 mln tpa. The expansion work is likely to be completed by Q1-2011.
MRPL could abort plans of the new refinery which was part of its master plan. Instead, MRPL will focus on developing the area around the existing refinery as a petrochemicals hub, with the setting up of aromatics and olefin complexes. The aromatics unit will comprise 9,20,000 tpa paraxylene unit and 1,40,000 tpa benzene unit. A detailed feasibility report for an olefin complex is likely to be commissioned shortly, and estimated to be submitted in six months. ONGC and MRPL have set up a special purpose vehicle - ONGC Mangalore Petrochemical Limited (OMPL) - to develop the petrochemicals hub.