CHENNAI: The 9 MMPTA refinery project, jointly executed by Indian Oil Corporation (IOC) and Chennai Petroleum Corporation Limited (CPCL), is expected to attract large and small scale petrochemical manufacturers in Nagapattinam, Tamil Nadu, and will boost economic growth in the region.
The Nagapattinam region will become a major hub for petrochemical manufacturing industries in the southern part of the country once the oil refinery is operational, H Shankar, Director (technical) of CPCL told TNIE.
“Some are in touch with joint venture agreements for manufacturing petro chemicals. Companies are also approaching Tamil Nadu Guidance Bureau (under Industries Department) inquiring about potential feeds available. We are organising a joint meeting with the industries shortly,” he said.
With Mangalore Refinery and Petrochemical Limited (MRPL), the only supplier of polypropylene, there is a significant demand for polypropylene and other petro chemical base materials in the southern part of the country, which are now purchased from Gujarat and in Panipat, Haryana.
Polypropylene is a raw material for various petrochemical products. The refinery will also produce polyvinyl chloride at a later stage, which is used for making pipes.
The technology for upgrading from manufacturing of high speed diesel to petro chemicals is evolving, and it will mature. It will be available at competitive prices, he said, adding that fuel demand will remain till 2040 and JV will primarily focus on that.
A Joint Venture Agreement has been signed by IOC and CPCL with five seed equity partners recently. TNIE reported about the development in early September. The seed equity partners will hold 10% stakes each.