Published on June 14, 2014
With rising costs and greater competition, petrochemical industries are facing fresh new challenges and last year in 2013 the growth in demand for polymers had reduced to 6.2% which was noted half in compare to 2012 due to sharp depreciation of the rupee which had made imports more expensive and also owing to gloomy economic growth. However as per industry experts in next two years numbers of Greenfield projects of petrochemical industry are expected to see completion which will be considered as vital recovery for petrochemical industry.
Greenfield project by one of the major Aromatic producers ONGC Mangalore Petrochemicals Ltd. (OMPL) which is promoted by two major petrochemical manufactures Oil and Natural Gas Corporation Ltd (ONGC) and Mangalore Refinery and Petrochemicals Limited (MRPL) and both the company hold a total equity of 49%, however in this fiscal the company will set up its aromatics complex at Mangalore with a project cost estimate of Rs. 5750 Crore.
The set up of aromatics complex has been scheduled to complete in this financial year and an ample segment of Paraxylene produced will be consumed at an adjacent PTA plant, which will be a significant aspect of the project. However, it is not the case with the co-produced benzene and greater efforts will be needed to put in to nurture a benzene consuming unit at or around the plant.
In the next fiscal year after setbacks and cost escalations, another Greenfield project – Olefin & Polyolefin by OPaL is expected to start its production of Ethylene with 1.1 mt/annum and Polyolefin and Propylene with each 0.4 mt/annum, has set up a multi-feed cracker at Dahej, Gujarat. Moreover in the Middle East to build a world class petrochemicals industry, the Gulf region has leveraged its massive oil and gas by importing industrial technology and expertise and creating thousands of well-paying jobs.
In compare to other regions in the world, Petrochemical industries in Middle East region in countries like Qatar and Saudi Arabia is developed and in the global industry these two countries are spending billions to maintain their enviable position. Moreover this year smaller projects by Brahmaputra Cracker & Polymer Ltd. (BCPL) which mostly know as the Assam Gas Cracker are expected to start up.
Furthermore, significant expansion of India’s capability to manufacture synthetic rubbers in next year will be seen and following this year, the first styrene butadiene rubber plant of India has been commissioned by a joint venture of Indian Oil Corporation (IOC) which is located at Panipat, Gujarat has a production capacity of 120,000 mt/annum and another styrene butadiene rubber plant from Reliance has a production capacity of 140,000 mt/annum.
However, there are several petrochemical which are dubious to be plugged for sometime due to significant demand and supply fissures.
