ONGC to invest Rs 17,000 cr in petrochem complex
Oil and Natural Gas Corp, India's largest oil producer, on Friday said it will invest Rs 17,000 crore at its petrochemical complex here.
By PTI |
MANGALORE: Oil and Natural Gas Corp, India's largest oil producer, on Friday said it will invest Rs 17,000 crore at its petrochemical complex here.
"We would be investing Rs 17,000 crore at the petrochemical complex here," ONGC Chairman and Managing Director R S Sharma told reporters.
The oil giant was to begin its petrochemical operations on Friday with the foundation laying ceremony of its Rs 4,900 crore aromatic complex, but the function was postponed due to bad weather.
The Petrochemicals Complex would be executed through a Special Purpose Vehicle of ONGC. While ONGC would hold 26 per cent stake in the SPV, Karnataka Industrial Development Corp would have 23 per cent and strategic investors 51 per cent.
The aromatics project would be completed in 3 years after finalisation of the process licensor and engineering, which is expected in a years' time, he said.
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Sharma said MRPL also plans to pump in about Rs 12,000 crore for setting up an Olefin complex, for which state-owned Engineers India Ltd has been asked to prepare a detailed feasibility report.The ONGC subsidiary is also expanding its naptha production capacity from 9.69 million tonnes per annum at present to 15 million tonnes a year at an estimated cost of Rs 8,000 crore, he said.
The two projects are part of ONGC's over Rs 35,000 crore investments in Mangalore Special Economic Zone, which will house a new 15 million tonnes refinery, power, LNG and petrochemical plants.
Sharma said around 200 acres of land, including that for a green belt, would be required for the Aromatic Complex to produce petrochemical building blocks Paraxylene and Benzene, the first in Southern India. It would need 1,600 cubic meters of raw water per hour.
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The integrated Aromatics (Petrochemicals) complex will produce paraxylene. The Naphtha produced at MRPL (an ONGC subsidiary) will be upgraded to Paraxylene in this Aromatics Complex, he said.Around two million tonnes per annum of Heavy Naphtha would be the feedstock to produce 0.95 million tonnes a year of Paraxylene and around 0.l5 million tonnes per annum of Benzene, the rest being LPG, gasoline pool feed and tail gas.
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The proposed Olefin Complex would use naphtha and propylene to produce polymers like high-density polyethelene, linear low-density polyethelene and polypropylene.ONGC took over MRPL in March 2003 and turned it around from a sick refinery to a profit making venture in 368 days flat.
ONGC-MRPL is promoting a 7.5 million tonnes per annum refinery at Kakinada, Andhra Pradesh. MRPL has been nominated by the Government as the buyer of Rajasthan crude, and ONGC-MRPL would be promoting a 7.5 million tonnes refinery at Barmer, Rajasthan.
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