By Nidhi Verma
BARMER, India, Feb 21 (Reuters) - India's Hindustan
Petroleum Corp (HPCL) plans to start its 9 million tonne-a-year
Barmer refinery and petrochemical project in Rajasthan state by
January 2024, the oil minister said on Tuesday, helping to cut
petrochemical imports.
India, the third biggest oil importer, is expanding refining
capacity to meet rising demand for fuel and petrochemical to
power economic expansion. India's per capita petrochemical
consumption is about a third of the global average.
Oil Minister Hardeep Singh Puri said the project, which
covers 4,800 acres, would produce 2.4 million tonnes a year of
petrochemicals and cut the annual petrochemical import bill by
260 billion rupees ($3.14 billion).
India's annual imports of petrochemicals were worth about
950 billion rupees, he said.
Most Indian refiners are linking petrochemical plants with
refineries as demand for plastics and specialty chemicals rises.
Integrating petrochemical plants would also help refiners hedge
against slowing demand for conventional fuel in the longer term.
The Barmer refinery and petrochemical project will produce
gasoline and gasoil for retail sales and will use naphtha,
liquefied petroleum gas and kerosene as feedstock to make
petrochemicals.
HPCL's head of refineries, S Bharathan, said his company
would look at importing oil from the Middle East to start the
project, which will also process 1.5 million tonnes a year of
locally produced oil.
The project, in which HPCL has a 74% stake and the Rajasthan
government holds the rest, was due to be completed by December
2022 but shutdowns due to the pandemic delayed the plans.
The project cost has risen to 720 billion rupees from the
430 billion rupees estimated in 2018, the minister said.
The Barmer complex, executed by HPCL Rajasthan Refinery
Ltd, could double capacity to 18 million tonnes a year, he
added.
($1 = 82.7910 Indian rupees)
(Reporting by Nidhi Verma; Editing by Edmund Blair)
Messaging: nidhi.verma.thomsonreuters.com@reuters.net))
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.