Communicator

Aug 28, 2024 | Offshore Technology

The venture, estimated to cost more than $10bn (Rs839.48bn), is in discussion with ONGC and its subsidiary HPCL.

The Chatterjee Group (TCG), a US-based private equity firm, is seeking a partnership with Indian state-run companies for an oil-to-chemicals project in Cuddalore, Tamil Nadu, reported Bloomberg, citing sources. TCG is in discussion with Oil & National Gas Corporation (ONGC) and its subsidiary Hindustan Petroleum Corporation (HPCL). The proposal suggests the state companies collectively hold a 49% stake in the project – estimated to cost more than $10bn – while TCG, which operates in India through Haldia Petrochemicals, would retain the remaining 51% share. TCG’s project aims to produce 3.5mtpa of ethylene and propylene.

As per Reuters’ April report, Haldia Petrochemicals CEO Navanit Narayan stated that the project is expected to be operational by 2029. The project’s financial closure is anticipated by the end of 2024. Haldia Petrochemicals currently operates a petrochemical plant in eastern India and is developing the nation’s largest integrated phenol project in West Bengal’s Haldia.

The potential investment reflects India’s focus on expanding petrochemical capacities, providing essential materials for a range of products from consumer goods to automotive components. As per government estimates, the demand for chemicals and petrochemicals in India is projected to triple to $1trn by 2040. Oil refiners, including Reliance Industries led by Mukesh Ambani, are shifting their production focus towards petrochemicals over traditional fuels to cater to the increasing demand for specialty plastics and chemicals used in solar panels and electric vehicles.

As per Reuters’ April report, Haldia Petrochemicals CEO Navanit Narayan stated that the project is expected to be operational by 2029. The project’s financial closure is anticipated by the end of 2024. In other development, ONGC has recently been granted government approval for an additional investment of $2.19bn into its petrochemical unit ONGC Petro Additions.

#haldia  #chatterjeegroup  #india  #cotc  #oiltochemical  #hplc  #ongc  #reliance  #ethylene  #propylene  #petrochemicals  #oilrefining  #petroadditions