Companies from Korea and Japan express interest in equity stake in MRPL

24-Jul-06

Korean and Japanese trading and investment companies have expressed an interest in equity partnership with Oil and Natural Gas Corporation (ONGC) for its petrochemicals complex at Mangalore. The project will produce paraxylene and benzene and will provide the consumers from the southern part of the country an advantage by removing the freight handicap faced by them. With the upgradation, the new refinery configuration will enable processing of higher proportion of low-cost sour and heavy crude leading to better margins. MRPLL proposes to produce paraxylene and benzene by 2010 from its existing refinery, once it is upgraded to 15 million tpa. MRPL had floated an expression of interest (EoI) to identify the demand for paraxylene and propylene about six months ago, in response to which, Korean and Japanese companies showed interest in the products, offered to provide technological support to MRPL and also expressed interest in becoming stakeholders in the petrochemicals project. ONGC is also in talks with Qatar Investment Authority for equity participation in the Mangalore liquefied natural gas (LNG) project to be set up as part of the petrochemicals complex.