Haldia Petrochemicals (HPL), one of the largest refiner in India, is planning to invest Rs 62,714 crore ($9 billion) in setting up a 12 Million Tonne Per Annum (MTPA) refinery-cum-petrochemical complex near Kakinada, in the state of Andhra Pradesh.
The planned crude-to-chemical complex will produce refinery derivatives and petrochemicals for domestic and export markets. It will also help meet HPL’s primary feedstock requirement of naphtha as well as paraxylene, the company said in an application seeking clearance from the Ministry of the Environment.
The refinery will be integrated with a downstream petrochemical complex with a 12 MTPA petroleum refinery and 1.6 MTPA of Ethylene equivalent petrochemical complex. “The proposed project has been conceptualized considering the integration with demand of PX and Naphtha within the group company and demand supply scenario of the downstream products,” HPL said.
The refinery’s product focus will be the production of petrochemical feedstock, which is different from a conventional refinery where fuel-based main products are produced. Among other petrochemical products, the company is looking to produce high-density polyethylene (HDPE), mono-ethylene glycol (MGE) and polyvinyl chloride (PVC).
“The main product of the proposed refinery will be LPG, Naphtha, Paraxylene etc catering to the feedstock requirement of the petrochemical units and fuel generation from the refinery will be limited to the extent it can be sold in domestic market. However, depending on the volume, some amount of diesel may have to be exported considering low demand growth rate in domestic market,” HPL said.
India, apart from Polypropylene, is a net importer of all other petrochemicals. Demand for different petrochemical products is increasing at a rate of 8-10% with the bulk of demand being met through imports. With HAL’s proposed investment in Kakinada and the previously planned petrochemical complex in Baliapal, Odisha, the country’s imports are expected to reduce significantly.