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BPCL to set up petrochem project in Kochi

Wednesday, 19 Jun 2013

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Bharat Petroleum Corp (BPCL), is planning to set up a petrochemical plant near its crude oil refinery in Kochi, Kerala.

For the purpose, the company is in talks with Oil and Natural Gas Corp (ONGC), to join hands for the project. BPCL has a JV with South Korean major, LG Chem, for the proposed project which is being expanded. The petrochemical fluid catalytic cracker plant will have the capacity to produce 500,000 tonne of propylene. It is expected to be completed in 2017. The unit will produce high-value products like acrylic acid and super absorbent polymers that are used in the manufacture of diapers, and oxoalcohol that is a feedstock for manufacturing paints and some cosmetics.

Meanwhile, the company is expanding its Kochi refinery to 15.5 million tpa from existing 9.5 million tpa with an investment of Rs 14,200 crore. The expansion work is expected to be commissioned by December 2015. Post expansion, the refinery will have excess propylene, which can be used as feedstock for the proposed petrochemical project.

The JV is also planning other downstream units with an investment of Rs 400-600 crore.