Page 26 - Plastics Nuews October 2017
P. 26
CoMPANy NEWS
HPCL to add 5 mt petchem capacity over 5 years
PCL plans to add up to 5 million tonnes of petrochemical configuration and will be able to process a wider variety
Hproduction capacity over the next five years. This of crude oils than before.
would involve a significant portion of HPCL’s planned Earlier this year, HPCL signed revised terms with the
₹61,000-crore capital expenditure for that period, MK Rajasthan government — a joint venture partner in the
Surana, CMD, said after the company’s annual shareholder refinery — losing many of the tax breaks that had been
meeting. HPCL’s proposed refinery in Barmer, Rajasthan, initially promised. “However, the internal rate of return
will be the first integrated refinery in the country, Surana remains about the same even under the new terms,”
said, with both an oil refining and a 2 mt petchem Surana said. “This is because the earlier agreement was
production capacity built into the design. Besides this, the drafted when international benchmark crude oil prices
company is in talks with the Andhra Pradesh government to were at twice where they are now.”
set up a 1.3 mt petchem plant in Kakinada along with GAIL.
Additionally, the
licensor has been Reliance Industries Limited
selected for
the company’s enters top three global energy
existing refinery
in Bhatinda, companies
Punjab, to set
u p p e t ch e m eliance Industries has jumped five places to rank as
capacity of 1.3 Rthe world’s third-biggest energy company behind
mt in the next Russian gas firm Gazrpom and German utility EON,
couple of years. according to Platts Top 250 global energy company
HPCL has also set up a petchem marketing department to rankings.State-owned Indian Oil Corp (IOC) broke
find the best prices for its products, Surana added. The into the top 10 club, climbing to 7th position in the
company’s investments in the petchem industry are in line 2017 ranking, up from 14th rank in 2016. IOC has been
with the plans of the other two state-owned oil refiners. steadily climbing the rankings — it was placed at No.
Last week, BPCL said it intends to invest ₹45,000 crore 66 in 2015.
in petchem capacity expansion over five years, while its
larger counterpart Indian Oil Corporation plans to invest
₹32,000 crore.
The investment push comes as refiners expect the demand
for plastics, adhesives and synthetic fibres to multiply in
the coming years even as the future of their traditional
revenue streams from refined fuels appears shaky amidst
the government’s push for e-vehicles. Also, petrochemicals
are a good way for such companies to “derisk in the motor
fuel segment,” Surana said. Oil and Natural Gas Corp (ONGC) was placed at 11th
On ONGC’s pending acquisition of the government’s 51.1 position in 2017 as against 20th in 2016. “While 14
per cent stake in HPCL, Surana said the Centre has formed Indian energy companies made it to the S&P Global
an advisory panel which will determine the per share Platts Top 250 Global Energy Company Rankings, they
transaction value of the deal. However, HPCL will continue were one short of the tally held last year,” Platts said.
to be a separate entity after the acquisition, he said. Reliance was ranked at 7th position in last year. Coal
While he did not give a completion date for the proposed India, the world’s largest coal producer, was the only
new refinery in Barmer, Surana said the revised plans Indian firm to have slipped in the ranking — 45 in 2017,
for the long-pending plant have a better technical down from 38 in last year.
Plastics News | Octob er 2017 26