Haldia Petrochemicals interested to source naphtha from IOC’s Paradip refinery

14-Jun-10

Haldia Petrochemicals Ltd is considering to source almost all its feedstock naphtha requirement from Indian Oil Corp’s Paradip refinery. Production is estimated to commence at Paradip in two years. The proposal is at an initial stage, and will be followed by a round of discussions and a feasibility study as the materialization of such an arrangement will require laying of a dedicated 330 km pipeline from the refinery to the petrochemical complex in Haldia by IOC. In 2008, in a bid to cope with a financial crunch, IOC had divided the Paradip refinery and petrochemical project, wherein the petrochem project was put on hold and IOC decided to proceed with the first phase 15 mln ton refinery to be commissioned in March 2012. At its recent board meeting, IOC revived its plans for the petrochemical project, as the PSU’s financial prospects improve. An outlay of Rs 22,300 crore has been earmarked for the planned a 1 mln tpa petrochemical plant.