Chennai based Tamilnadu Petroproducts Ltd (TPL) has chalked out a plan to set up linear alkyl benzene (LAB) and normal paraffin projects in West Asia and Southeast Asia at an outlay of $335 million (approx Rs 1,600 crore).

TPL is jointly promoted by the Tamil Nadu Industrial Development Corporation and Southern Petrochemical Industries Corporation.

The proposed plants are to be set up by Certus Investment and Trading Ltd (CITL), Mauritius, a SPV floated by TPL for overseas investments and Proteus Petrochemicals.

The LAB project is likely to come up in Yanbu Industrial City, Saudi Arabia. The project includes an 80,000 tpa standalone plant along with associated utilities and offsite facilities. It is expected to cost $210 million (approx Rs 1,029 crore) and is scheduled to begin commercial production by March 2012. The equity investment in the project company will be made through Gulf Petroproducts Company, in which CITL will have a 50 per cent holding.

According to sources, CITL is in talks the Royal Commission of Yanbu for site allocation.

Meanwhile, the normal paraffin project entailing a cost of $125 (approx Rs 612 crore), is to come up in Singapore and have a capacity of 1,00,000 tpa. The project will be funded through debt-equity ratio of 70:30.

The plant will be located at Jurong Island, the site possession of which has been completed. It has also received in-principle clearance from the National Environment Agency, Singapore.