Mumbai: Bharat Petroleum Corporation Limited (BPCL) has said there is no question of shelving its ambitious plan of foraying into niche petrochemicals with the Rs. 5,000-crore Kochi petrochemicals project, though its joint venture with Korean major LG Chem for the same has reached a dead-end.
“Yes, it is true that even after inking the MoU with us in July last year, LG Chem has not confirmed its participation in the Kochi petrochemicals project,” R K Singh, BPCL's outgoing chairman and managing director, told reporters over the weekend at a post-AGM press briefing.
“But let me assure you that there is no plan to shelve the project as we have already started discussions with other companies,” he said.
He further said talks with the Korean company were at a very advanced stage and that there were no differences so far.
“It is their decision as there has been no major problem on anything in the MoU. They (LG Chem) are saying the global environment is not very conducive for large investment but it seems they have some other plans and have already made some investment elsewhere.”
“There is no question of shelving the project as this is a very important diversification for us. We will be the first company in the country to make specialty chemicals. We are in discussions with other global players who have this particular technology to manufacture the specialty chemicals. We are even open to get the technology licensed to us,” he said.
There are only five companies which have the technology to make specialty propylene derivatives in the world, and BPCL is talking to all of them, B K Datta, director of refineries at BPCL, later told PTI.
No domestic refinery has the technology to make specialty propylene derivatives, and they are being imported now, he said.
BPCL and LG Chem had inked a memorandum of understanding (MoU) to set up the project adjacent to the former's Kochi refinery complex at an estimated investment of Rs. 5,000 crore in July 2012. It was to be a part of the refinery's expansion project.
Mr Datta said the company has acquired the additional 100 acres of land for the expansion and petrochemical project, but the green nod for the same is awaited.
BPCL currently has four refineries in the country - a 12 MT facility in Mumbai, a 9.5 MT plant in Kochi, a 6 MT Bina refinery in MP, which is a JV with Oman Petroleum, and a 3 MT Numaligarh refinery in Assam.
