BPCL mulls petrochemical feedstock production in Madhya Pradesh

26-Jul-05

BPCL is planning to produce a range of petrochemical feedstock through its subsidiary, Bharat Oman Refineries Ltd (BORL), at Bina in Madhya Pradesh. This refinery is scheduled to be complete in 2009 and is estimated to incur a cost escalation of Rs 2,000-3,000 crore from the previous estimate of Rs 6,354 crore in 2001. The project that has stayed dormant for many years since the time it was conceived it 1995, is likely to be revived in August after the company is assured by the State Government for fiscal benefits for 15 years. Engineers India Ltd (EIL) has been appointed for preparing a cost estimate and a detailed process configuration study for the project and the tendering process is being worked upon. The project is due for implementation by 2009. Apart from the product profile, BPCL is also reportedly considering splitting the entire project into two parts. In the first phase, the refinery is estimated to have a capacity of about 6 million tons, which is slated to increase by about 3 million tons later. The company is weighing the option of setting up a fluid catalytic cracking unit that would produce feedstock for polypropylene, polystyrene, etc