CPMA Member Companies
Latest News of CPMA Member Companies
ONGC to invest Rs one lakh cr for Petrochem capacity expansion
The Oil and Natural Gas Corporation (ONGC) is planning to invest Rs one lakh crore by 2030
towards expansion of its petrochemicals manufacturing capacity. This will include setting up new
facilities to produce chemicals directly from crude. With this, the combined petrochemicals
capacity of MRPL and OPaL is targeted to reach more than double to eight million tpa by 2030.
Under the expansion plan, two mega projects, one each on the eastern and the western coast, will
be set up, wherein the facilities will either directly use crude to produce chemicals or take other
feedstocks. The crude produced in the country by ONGC could also be utilised as feedstock for
its crude-to-chemical facility. ONGC's plans are likely to be implemented by its subsidiary,
Mangalore Refinery and Petrochemicals (MRPL), and its joint venture (JV) ONGC Petro
additions (OPaL). The petrochemical segment has wider applications, and it is expected that its
usage may last longer than regular transportation fuels.
Further, the move is aligned to the government’s thrust to propel India to become a major
petrochemical hub in the world.
Indian Oil to collaborate with LanzaJet to set up green aviation fuel firm
India’s first ever green aviation fuel firm will be set up by a joint venture of Indian Oil Corporation (IOCL) and US-based clean energy technology company LanzaJet Inc, and domestic airlines, projects Projects Today.
The plant will be producing sustainable aviation fuel with alcohol-to-jet technology at IOCL’s Panipat refinery in Haryana by spending Rs 3,000 crore. It will use corn-based, cellulosic, or sugar-based ethanol to produce SAF. The plant’s initial capacity would be to produce 85,000 tonnes of fuel per year.
The IOCL will have a 50% stake in the new company, LanzaJet will have a 25% stake, and the airline companies will have the remaining 25% stake. Several airline companies can opt for a stake from two to five percent in the company and will ensure the utilization of fuel.
The Centre is taking steps to reduce emissions in the aviation sector and involving airlines in such types of new projects.
MP govt gives nod to Rs 50,000-cr BPCL proposal for Bina refinery
Chief Minister Shivraj Singh Chouhan approved a revised proposal of Rs 43 crore to Rs 50,000-crore for the expansion of Bina Refinery of Bharat Petroleum Corporation Limited (BPCL) and setting up of a petrochemical project, an official said.
The Madhya Pradesh Investment Promotion Committee headed by Chief Minister Shivraj Singh Chouhan on Tuesday approved a revised official said. The project is expected to provide employment to about 2000 youths, he said. The production is likely to start by financial year 2027-28. Petroleum by-products such as gasoline, diesel, ATF (aviation turbine fuel)/jet fuel, LLDPE (Linear Low-Density Polyethylene), HDPE (High Density Polyethylene), bitumen, benzene among others will be produced at the complex. For the availability of feedstock, several downstream MSMEs will be set up in the area. The committee also gave approval for the investment of Rs 150 crore in Mohasa-Babai industrial area, the official said.
IOC to invest Rs 61,077 cr in petchem complex at Paradip, Odisha
India's top oil company IOC will invest Rs 61,077 crore in building a petrochemical complex at Paradip in Odisha - its largest ever investment at a single location - as it doubles down on its transition plan.
In a statement, Indian Oil Corporation (IOC) said its board has given "Stage-1 approval for setting up Paradip petrochemical complex at Paradip, Odisha at an estimated cost of Rs 61,077 crore." "This mega project will be the largest-ever investment of Indian Oil at a single location," it said but did not give timelines for completion of the project. This is a part of its transition plan including boosting petrochemical intensity to help protect against volatility. Petrochemical intensity refers to the percentage of crude oil that is converted directly into chemicals that are used to make plastic and other material.
Crude oil, pumped out of the ground and from below the seabed, is processed in refineries to make petrol, diesel and other fuel. It can be processed to make petrochemicals, bypassing the fuels.
IOC's petrochemical intensity - the percentage of crude oil converted into chemicals- is low at 5-6 per cent currently. The company intends to take it up to 10-12 per cent. The firm's newer refineries at Panipat in Haryana and Paradip in Odisha have the petrochemical intensity of 15-20 per cent which would be raised to 25 per cent, its chairman Shrikant Madhav Vaidya had told PTI in an interview last month.
Energy transition refers to the shift from fossil-based systems of energy production and consumption - including oil, natural gas and coal - to renewable energy sources like wind and solar, as well as lithium-ion batteries. This shift is likely to gradually cut demand for petrol and diesel and so in preparation of that IOC is doing petrochemical projects.
The company said the petrochemical complex at Paradip would include a world-scale cracker unit along with downstream process units for producing several petrochemical products including polypropylene (PP), high density polyethylene (HDPE), linear low-density polyethylene (LLDPE) and poly vinyl chloride (PVC) - these being building blocks of different grades of plastics. It shall also facilitate production of niche chemicals and petrochemicals like phenol and isopropyl alcohol.
Talking of the development, Vaidya said, "This mega project is aligned with Prime Minister Narendra Modi's vision of Purvodaya that is sure to accelerate the development trajectory and fuel prosperity in Eastern India. This cutting-edge, state-of-the-art petrochemical complex will undoubtedly be transformative in its impact, significantly advancing the Aatmanirbhar Bharat initiative." "This mega project shall significantly improve the petrochemical intensity index of IndianOil. It shall be a growth driver in making the company a major player in the petrochemical industry, while strengthening India's self-reliance in the petrochemical sector," he said.
The project, the statement said, will catalyze the growth of PCPIR and Plastic Park at Paradip. "On commissioning of this project, domestically available Petrochemicals are expected to provide feed and vitalise industrial growth in key downstream industries like plastic, pharma, agrochemical, personal care, paints etc. It is also expected to create employment opportunities in eastern India, especially Odisha," it added.
India’s Odisha approves incentives for IOC cracker
India's Odisha state on 9 March approved financing for state-controlled refiner IOC's 580bn rupee ($7bn) dual-feed Paradip cracker project. The funds will give it a stake in the plant, proportional to the amount invested. The complex will produce ethylene, propylene, polyvinyl chloride and phenol.
Indian Oil Corporation Establishes Subsidiary for Clean Energy Business
Indian Oil Corporation (IOC), the largest oil refining and fuel marketing company in India, has established a new subsidiary to expand its low carbon, clean and green energy business, reports PTI.
The move is part of the company’s transition plan to achieve net zero emissions from its operations by 2046.
The subsidiary will consolidate all of IOC’s existing green assets, such as biofuels, renewables, green hydrogen and carbon offsets, under one umbrella, and rapidly expand its footprint across sustainable energy avenues. IOC is targeting 200 GW of renewable energy capacity by 2050, as well as 7 million tonnes of biofuels and 9 million tonnes of biogas. The company also plans to set up green hydrogen plants at all its refineries as part of a Rs 2 lakh crore green transition plan.
In addition to traditional fuels like petrol, diesel and LPG, IOC is also focusing on petrochemicals to hedge volatility in the fuel business. It is also turning petrol pumps into energy outlets that offer EV charging points and battery swapping options.
IOC is collaborating with NTPC to augment generation of electricity from solar, wind and other renewable sources by around 2.8 GW, and is solarising 20,705 petrol pumps with an installed capacity of 121 MW. The company also plans to set up 4,700 EV charging stations and 66 battery swapping stations, and is working with Israeli startup Phinergy to explore manufacturing lithium-ion and aluminium-air battery systems.
The company has firmed up collaboration with ReNew Power and Larson & Toubro Limited for green hydrogen business. It will set up a 7,000 tonnes per annum green hydrogen producing facility at its Panipat oil refinery at a cost of Rs 2,000 crore by 2025, and similar units will come up at other refineries in due course of time. The Rs 2 lakh crore investment planned to achieve net-zero covers the cost of setting up green hydrogen facilities at refineries, improving efficiency, renewable energy capacity addition, and alternate fuels.
IOC Chairman Shrikant Madhav Vaidya said the company is committed to energising India’s rising energy needs while also being the flagbearer of the country’s green energy transition.
IOC for developing Haldia refinery into petrochemicals complex
Oil marketing PSU Indian Oil Corporation (IOC) is keen to develop its existing refinery in West Bengal's Haldia into a petrochemicals complex for “sustaining operations profitably”, a company official said on Wednesday.
Running a standalone refinery is “not sustainable in terms of profitability” for which it has to be supplemented by a petrochemicals complex, he said. "We want to set up a petrochemicals complex contiguous to the Haldia refinery whose current capacity is 8.5 million tonnes per annum (mtpa)", the company official said.
IOC has sought land from Hindustan Fertilizer Corporation (HFC), whose factory is lying defunct, for developing the petrochemicals complex, he said.
"We have sought 175 acres of land from HFC. It is near the refinery and it has been given on lease by Haldia Dock Complex (HDC) to the ministry of chemicals and fertilisers. We are seeking the land for the petrochemicals project", the IOC official said.
Drawing an analogy, the official said the Paradip refinery of IOC has been turned into a petroleum, chemicals, and petrochemicals investment region (PCPIR).
"The Paradip refinery has a capacity of 15 mtpa and has numerous petrochemicals units around it. This gives better profitability margins to the Paradip operations. This is the same thing which IOC wants to replicate at Haldia", he added.
According to the official, the capacity of a petrochemical project depends on the quantity of feedstock, which is naphtha, coming from the refinery. He said the land is also required for safety purposes as the refinery complex at Haldia has become congested.
To a query, the IOC official said that “discussions have been held with HDC several times but nothing is fructified so far”. An official of HDC said "the land could only be used for port-related usage like facilitating export-import cargo. We have already stated this to the concerned authorities at the Centre".
In a recent visit of Rameswar Teli, the minister of state for petroleum and natural gas, at the Haldia refinery, he said IOC had apprised him of the issue regarding the HFC land.
While the Paradip refinery complex is built on 5,000 acres, the Haldia unit is located on 640 acres, the IOC official added.
Indian Oil Corporation Invests Rs 2 Lakh Crore in Net-Zero Emissions Plan, Focuses on Green Hydrogen
India’s largest oil company, Indian Oil Corporation (IOC), is planning to establish green hydrogen plants at all its refineries in a Rs 2 lakh crore green transition plan to reach net-zero emissions from its operations by 2046, said Shrikant Madhav Vaidya, Chairman, IOC.
The firm aims to expand its refining capacity from 81.2 million tonnes to 106.7 million tonnes annually as it forecasts India’s oil demand to rise from 5.1 million barrels per day to 7-7.2 million bpd by 2030 and 9 million bpd by 2040. While oil will continue to be a significant fuel for the next few years, IOC is preparing for a transition involving green hydrogen, biofuels, electric vehicles (EVs), and alternative fuels.
Hydrogen, the cleanest fuel, is being touted as the fuel of the future, but its relatively high cost compared to alternative fuels currently limits its usage in industries. Refineries use hydrogen to lower the sulfur content of diesel fuel, and currently, it is produced using fossil fuels such as natural gas. IOC plans to use renewable sources such as solar energy to split water and produce green hydrogen.
IOC aims to achieve net-zero emissions by investing over Rs 2 lakh crore and is planning to produce 50% of its overall hydrogen output as green hydrogen within 5-10 years and 100% by 2040. Additionally, the company plans to increase its renewable energy capacity to 12 GW from the current 256 MW and have EV charging facilities at 10,000 fuel stations within two years.
IOC is also remodelling its business with a focus on petrochemicals to hedge volatility in the fuel business and make itself future-ready by turning petrol pumps into energy outlets that offer EV charging points and battery swapping options. The petrochemical intensity, the percentage of crude oil converted into chemicals, is currently low at 5-6%, which IOC intends to increase to 10-12%. The newer refineries at Panipat and Paradip have a petrochemical intensity of 15-20%, which IOC plans to raise to 25%.
GAIL imitates Reliance with US ethane plans
Source: Economic Times
India's largest gas firm GAIL is imitating billionaire Mukesh Ambani-led Reliance Industries Ltd in planning to import ethane from the US to replace natural gas and naphtha as feedstock at its petrochemical plants. "In a bid towards diversification of the feedstock, GAIL is looking to import ethane from ethane-surplus countries with matured export terminal infrastructure through water borne transportation to India and transport it further through GAIL's pipeline systems to demand centres," the company said in a tender document.
It sought quotes to hire a very large ethane carrier (VLEC) for 20 years starting mid-2026 for importing ethane from the US. The ship with capacity of 80,000 to 99,000 cubic metres is targeted to take deliveries from US ports of Marcus Hook, Nederland, Morgan's Point or Beaumont and deliver ethane at Dahej or Hazira in Gujarat or Dabhol in Maharashtra.
GAIL has a petrochemical plant at Pata, near Kanpur in Uttar Pradesh, and is also looking to set up another unit at Usar in Maharashtra. The company had to cut down on run rate at Pata after the government diverted gas supplies from the plant to city gas suppliers. This led to its profitability being impacted and so now the company is looking to supplement the feedstock with ethane.
Reliance had in 2014 announced ethane plans in 2014 and started importing the feedstock from the US in 2017. It is importing 1.6 million tonnes per annum of ethane and is using six VLECs for transporting it to India.
With ethane replacing propane and naphtha used in ethylene production, Reliance is estimated to have saved about USD 450 million annually.
Reliance used 2.5 million tonnes a year of naphtha as feedstock in petrochemical crackers and ethane reduced its use by 5,00,000 tonnes, which now could be exported.
Ethane is expected to be produced in large volumes in North America due to the shale gas revolution, which has generated an abundance of liquefied natural gas (LNG) and liquefied petroleum gas (LPG). It is primarily used as petrochemical feedstock to produce ethylene by steam cracking.
Ethylene is the starting material for making a wide range of products -- from packaging films, wire coatings, and squeeze bottles as well as plastics and synthetic rubber.
Reliance uses ethane at its crackers in Dahej and Hazira in Gujarat and Nagothane in Maharashtra.
GAIL in the tender said it is looking at co-transportation of ethane and LNG through the same vessel loaded in separate compartments.
"Bidders may indicate whether the vessel offered for time-charter is compatible for part loading of ethane and LNG. In case of co-transportation the primary and secondary fuel options may necessarily be indicated," GAIL said.
GAIL said the 20 year charter hire agreement can be extended by a further 5 years.
Last date for submission of an expression of interest (EoI) for offering VLECs is February 25.
Chemplast Sanmar to expand plant in Krishnagiri, plans ₹680 cr capex
Chemplast Sanmar sets great store by ‘custom manufacturing’ — producing what a customer asks for – and plans to spend ₹680 crore in sprucing up its Custom Manufactured Chemicals (CMC) Division. The capex programme is spread over the next 15 months with a cash balance of ₹1,160 crore.
This was the central message of the company delivered through an investor presentation that accompanied its October-December 2022 quarter financial results.
Chemplast Sanmar’s primary product is PVC resin, which accounts for 60 per cent of its sales, but it also manufactures a range of chemicals such as caustic soda, chloromethanes and hydrogen peroxide.
But Chemplast is giving a thrust to ‘custom manufacturing’, expanding its 1,068 tonnes per annum plant at Berigai, near Krishnagiri, Tamil Nadu. This plant produces whatever chemicals the customer asks for in the areas of agrochemicals, pharmaceuticals and fine chemicals. Its capabilities include “a range of chemistries” such as cyanation, hydrogenation and liquid purification.
The company believes that custom manufacturing has “significant entry barriers”, such as approvals by customers and expectations from customers of process innovation and cost reduction.
In a press release issued on Saturday, Chemplast Sanmar’s Managing Director, Ramkumar Shankar, said the company had “received confirmation from one of our customers” that it had been selected for the supply of an ‘advanced intermediate’.
“Based on this development, along with the announcement in the previous quarter on the signing of an LOI for another intermediate, and a healthy pipeline of products, we plan to kick-start the next phase of expansion of the multi-purpose facility immediately,” the release said.
Rising energy costs hit Q3 profits
Chemplast Sanmar has reported an 89 per cent fall in its net profit for the October-December quarter of 2022, compared with the corresponding quarter of 2021 — to ₹27 crore from ₹237 crore — even though turnover fell only 18 per cent to ₹1,189 crore from ₹1,452 crore.
The company attributes this to “headwinds for most part of the quarter”. Falling prices of finished goods coupled with increase in energy costs, which went up by ₹37 crore during the quarter, impacted profits. A revival of PVC prices came only in the end of December, the release said.
PVC prices on rise
The situation for the PVC segment is turning favourable again, driven by robust domestic demand and China re-opening, it said.
PVC prices have started moving upwards after nine months of falling prices, channel inventory has dried up and volume off-take is back to normal.
We expect the demand in FY23 for Suspension PVC in India to touch the pre-pandemic levels of 3.3 million tonnes, a 16-17 per cent growth over FY22. Overall, with recovery in PVC prices and healthy demand trends, we expect our Q4 FY23 performance to return to a growth trajectory,” Shankar said in the press release.
On the NSE on Friday, the Chemplast Sanmar share, of face value of ₹5, ended at ₹432.25, which was ₹1.55 (0.36 per cent) lower than the previous close.