Bid & Tender
Indian Petchem Producers Consider Increasing Production Rates

Date : May 18, 2020

Indian petrochemical producers are starting to, or considering, increasing production rates as the country eases Covid-19 restrictions.

 

The Indian government announced plans for a fourth phase of Covid-19 restrictions this week with details yet to emerge. The country is scheduled to emerge from a nationwide lockdown on 17 May. The third phase saw the easing of restrictions allowing industries to start resuming production. Rail and road transportation restrictions were also eased during this phase.

 

Most key producers are looking at raising operating rates at crackers and key downstream units, amid growing expectations that consumer demand will increase in the coming month or so. "Downstream [markets] have started picking up so we expect things will get better," said a key producer.

 

Private-sector conglomerate Reliance Industries (RIL) is currently operating its crackers at its Jamnagar complex at full operating rates, following a dip in production in late March and April when the country's Covid-19 lockdown started on 25 March.

 

RIL produces 1.5mn t/yr of ethylene from its Jamnagar-based cracker, with another 930,000 t/yr from its cracker in Hazira. Both crackers are integrated with downstream units producing polyethylene (PE) and ethylene glycol (MEG).

 

Indian state-controlled refiner Bharat Petroleum is considering increasing production in the coming week at its refinery-linked units producing propylene in Mumbai and Kochi. It has been operating at about 60pc since the lockdown started. It can produce 70,000 t/yr of propylene in Mumbai and another 500,000 t/yr of propylene in Kochi.

 

But demand from downstream markets in western India is also dependent on the easing of lockdowns in key consumer centres like Mumbai.