Haldia Petrochemicals to invest $ 4 billion in Odisha refinery

On Tuesday, the Indian state of Odisha accorded Haldia Petrochemicals Ltd’s (HPL) proposal to invest $ 4 billion to establish an integrated refinery with aromatics complex for production of Paraxylene and Purified Terepthalic Acid (PTA) at Baliapal.

The land for the project was identified near the upcoming port of Subarnarekha, which is being built by Tata Steel in partnership with the state government of Odisha.

The petrochemical project and the port will work mutually. While HPL will receive crude oil import infrastructure, the Subarnarekha Port will receive a large customer, an official said.

The first phase of the project is expected to be completed in five years, said the official.

The HPL unit is planned to produce 1.6 million tonnes of paraxylene per annum and 2.5 million tonnes of purified terepthalic acid (PTA) per annum, and light naphtha and fuel.

“Building the PTA unit will prompt new investment in these products and help facilitate further growth of downstream processing units along the value chain,” an official statement said.

The state of Odisha already has a 15-million-tonne refinery and petrochemical complex operated by Indian Oil at Paradip. This additional capacity will make the state a petrochemical and refinery hub of India’s east coast.