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Haldia Petrochemicals Makes $10 Billion Bet On Crude-To-Chemicals Project In Tamil Nadu

Updated: Apr 01, 2024 03:35:56pm

Haldia Petrochemicals Makes $10 Billion Bet On Crude-To-Chemicals Project In Tamil Nadu

Chennai, Apr 1 (KNN) In a move to capitalise on India's surging demand for polymers, Kolkata-based Haldia Petrochemicals (HPL), a leading producer of polymers and chemicals, has unveiled plans for a USD 10 billion oil-to-chemicals (O2C) project in Cuddalore, Tamil Nadu.

The ambitious project aims to directly convert crude oil into vital chemicals like ethylene and propylene, key ingredients in products ranging from shopping bags and car parts to water pipes, stated Navanit Narayan, CEO, HPL.

Upon completion, the cutting-edge facility will boast an impressive capacity to manufacture 3.5 million tonnes of these essential polymers annually.

HPL's investment comes at a pivotal time, fuelled by the robust domestic demand for chemicals and the global petrochemicals industry's oversupply woes, exacerbated by China's record capacity additions last year.

“We are seeking investors for the Cuddalore project, a venture with a global scale, and are in talks with the central government for incentives,” remarked Narayan.

While a final investment decision on the Cuddalore project is expected by year-end, pending funding arrangements, the project's construction and commissioning are anticipated to span four to five years.

Narayan expressed confidence in attracting investment from major global and domestic players for the Cuddalore project. The cutting-edge facility is designed to maximise value extraction, with 80 per cent of the crude oil feedstock slated for direct conversion into high-value chemical products. The remaining portion will be processed into conventional fuel products like diesel.

In addition to the Cuddalore mega-project, HPL's parent company, the US-based The Chatterjee Group, is concurrently investing Rs 4,000 crore (approximately USD 500 million) in a downstream chemical venture in Haldia, West Bengal.

This state-of-the-art facility, slated for completion by early 2026, will produce 300,000 tonnes of phenol and 185,000 tonnes of acetone annually, solidifying its position as India's largest such complex.

(KNN Bureau)


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