BP and Indian Oil Corporation plan to set up a 50: 50 joint venture acetic acid plant in Gujarat by 2015. The two companies have entered into a memorandum of understanding to invest in a one million tonne per annum acetic acid plant with associated gassification facilities for production of synthesis gas. Acetic acid is used in petrochemicals and paints, apart from other products.
The proposed plant would employ BP's latest Cativa XL technology, whilst the gassification facilities would utilise petroleum coke feedstock from Indian Oil. Gujarat Narmada Valley Fertilisers Company (GNFC) is producing acetic acid. GNFC’s plant is unable to meet the entire domestic demand. GNFC capacity is 160,000 tonnes per annum. The current supply-demand gap is about 600,000 tonnes.
Indian Oil 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
Company Name | CMP |
---|---|
Reliance Industries | 2859.60 |
Indian Oil Corp. | 162.40 |
BPCL | 627.60 |
HPCL | 537.05 |
MRPL | 203.15 |
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