Page 58 - Plastics News May 2017

BUSINESS NEWS

BP agrees to sale of interest in HPCL, Mittal to invest US$3 bln

SECCO to Sinopec petrochemical unit in Bhatinda

P has agreed to sell its 50% stake in the Shanghai tate-owned Hindustan Petroleum Corporation Ltd
BSECCO Petrochemical Company Limited (SECCO) to S(HPCL) and its partner Lakshmi N Mittal will invest
Gaoqiao Petrochemical Co Ltd, a 100% subsidiary of China about US$3 bln in setting up a petrochemical complex at
Petroleum & Chemical Corporation (Sinopec), BP’s joint the Bhatinda refinery in Punjab. HPCL-Mittal Energy Ltd
venture partner, for a total consideration of US$1.68 bln. (HMEL), a joint venture between HPCL and Mittal

“This decision aligns our petrochemicals business in China Energy Investments Pvt Ltd, Singapore, plans to set up
with our global focus on areas where BP has leading an up to 1.2 mln ton naphtha cracker, expandable to
proprietary technologies and competitive advantage. 1.7 million tonnes to produce basic raw materials for
plastics According to the report, the plant will have a
capacity of 1.2-million tonnes, with further expansion
to 1.7 million tonnes in the future. The company is also
expected to fast track the four years it takes to set up
the petrochemical plant.

This will be HPCL’s first petrochemical plant in
Northern India. The company has refineries in Mumbai
and Visakhapatnam. Meanwhile, HMEL is expanding
Bhatinda refinery’s capacity to 11.25 million tonnes/
year from the current 9 million tonnes. The US$350
million expansion
will be completed
next month. HPCL
China is a key region for our chemicals business and BP will and Mittal are
continue to look for opportunities to build on our position equal partners in
in the country,” said Rita Griffin, chief operating officer, the refinery, with
BP Global Petrochemicals. SECCO is currently owned by BP 49% stake each
(50%), Sinopec (30%) and Sinopec Shanghai Petrochemical and the rest (2%)
Company Limited (20%), in which Sinopec holds a majority is held by financial
interest. Based in Shanghai, SECCO is a major producer institutions. The project is the single largest investment
of olefins - ethylene and propylene - together with in the state of Punjab. It is the first oil and gas project
polymers and other derivatives including polyethylene, to be set up in the state. The refinery produces eight
polypropylene, acrylonitrile styrene, polystyrene, liquid product and three solid products of EURO-IV
butadiene and other products. “China is a country of great specifications and the refinery is said to be a zero
significance to BP given its market potential,” said Dr. bottom plant, according to HMEL. It also says the
Xiaoping Yang, BP China president, “BP has been committed refinery was set-up in record time of four years with an
to doing business in China for more than four decades. investment US$5 billionAs part of the refinery project,
Looking into the future, we plan to continue to invest in HMEL has set up a PP unit utilising Novolen Gas-phase
China in areas that provide the best growth opportunities polypropylene process, with a production capacity of
for BP, our Chinese partners and the country.” 440,000 tonnes/year of homo-polymer PP.

The transaction is subject to a number of regulatory
approvals and other conditions, subject to which, it is
currently anticipated to complete before the end of the
year with the consideration payable in instalments.

Plastics News | May 2017 58