Date:23/07/2005 URL: http://www.thehindubusinessline.com/2005/07/23/stories/2005072302470300.htm

Back BPCL mulls petrochem feedstock production at Bina refinery

Pratim Ranjan Bose

Kolkata , July 22

BPCL is considering production of a range of petrochemical feedstock at the proposed refinery at Bina in Madhya Pradesh.

While the detailed feasibility report is expected to be ready in August, the six-million-tonne refinery is expected to undergo a cost escalation of Rs 2,000-3,000 crore from the previous estimate of Rs 6,354 crore in 2001.

The project was conceived in 1995.

Apart from the product profile, BPCL is also reportedly considering splitting the entire project into two parts.

In the first phase, the refinery would have a capacity of six million tonnes, which is slated to be increased to nine million tonnes later.

The project is due for implementation by 2009.

The refinery is proposed to be set up through Bharat Oman Refineries Ltd (BORL), a BPCL subsidiary.

The project was revived recently after an assurance from the State Government for fiscal benefits for 15 years.

The company has appointed Engineers India Ltd (EIL) for preparing a cost estimate and a detailed process configuration study.

The tendering process is also being worked upon.

Sources said that the company is weighing the option of setting up a fluid catalytic cracking unit that would produce feedstock for polypropylene, polystyrene, and so on.

BPCL is also a major producer of benzene, toluene, and a few petrochemical intermediaries through the Mumbai and Cochin refineries.