To set up a petrochemical plant at Kochi refinery, marks foray into sector. Bharat Petroleum Corporation Ltd will shortly seal a deal with the UK’s LP Chemical for a maiden foray into petrochemicals. A senior BPCL official said the state run company would form a joint venture with LP Chemicals, based in Winsford off Cheshire, to set up a petrochemical plant at its Kochi refinery in Kerala.

The official told BS that “The negotiations are on. We will seal the deal soon. Our investments will be to the tune of INR 13,000 crore and our partner will bring in INR 6,000 crore. We are looking at 2015 as the deadline.”

The official added that Petrochemicals are chemicals made from petroleum (crude oil) and natural gas. BPCL is engaged in discussions with the Kerala government for concession on the investment in the planned petrochemical unit.

LP Chemicals manufacture and distribute laboratory chemicals and veterinary chemicals to customer specification. This September, at the company’s annual general meeting, R K Singh, who is BPCL’s chairman and managing director, had announced the company’s plans to spend INR 40,000 crore in the next five years to set up a petrochemical plant at the Kochi refinery to produce niche products, expand the capacity of existing refineries, gas marketing and exploration and production.

Another BPCL official said the company expected good growth in the petrochemical sector. The official added that “It has seen a growth rate of over 16% per annum in the past few years. Polymers constitutes almost 70% of the output in India.”

(Sourced from BS)