"Believer - Humanitarian - Habit of Success" Sukumar Balakrishnan is the Founder of JB GROUP, a 500 Crore National Organization with over 150 Direct & 1200 indirect professionals operating from 5 major cities in India. Jayalakshmi Balakrishnan Group, a multi-faceted group venturing into, E- Commerce and Import-Export (INNOKAIZ), Retail and Wholesale (JB MART), Food and Beverages (KRISHNA FOODS ), Real Estate (Constructions on sites, Interior scaping, Facility Management)
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Showing posts with label Indian Oil. Show all posts
Showing posts with label Indian Oil. Show all posts
Thursday, November 24, 2011
Indian Oil, BP in pact to set up 1 mt acetic acid plant
New Delhi: BP and Indian Oil Corporation are planning to set up a 50:50 joint venture acetic acid plant in Gujarat.
The two companies entered a memorandum of understanding to invest in a one-million-tonne a year acetic acid plant with associated gasification facilities for production of synthesis gas.
Acetic acid is used in petrochemicals and paints, apart from other products.
A joint feasibility study is currently under way to confirm the exact configuration of the project, which is expected to be commissioned in 2015, separate statements issued by the two companies said.
The proposed plant would employ BP's latest Cativa XL technology, whilst the gasification facilities would utilise petroleum coke feedstock from Indian Oil.
On whether BP-Reliance Industries agreement will have any impact on this understanding, official sources said, “The BP-Reliance Industries agreement does not include venture into acetic acid business.”
Sources said, currently, Gujarat Narmada Valley Fertilisers Company (GNFC) is producing acetic acid.
GNFC's plant is unable to meet the entire domestic demand. GNFC capacity is 1.6 lakh tonnes a year.
The current supply-demand gap is about six lakh tonnes, the official said, adding that the gap is met through imports.
“By the time the joint venture plant is proposed to come up (in 2015), the gap would be about one million tonnes, which is the proposed capacity of this plant.”
Indian Oil has recently commissioned a coker unit with one million tonne petcoke capacity at Gujarat Refinery.
The acetic acid will be a good opportunity for enhanced value addition besides providing window for import substitution, the official said.
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