The BPCL Kochi Refineries is expecting around a 16% increase in its turnover in another three years with the completion of its second petrochemical project. "We expect the turnover to increase by Rs 100 billion to Rs 700 billion by 2022 at the current level of prices," said Prasad K Panicker, executive director of the company.
Its Rs 111.30 billion second petrochemical complex to manufacture polyols is expected to go on stream by 2022. An import substitute, the products find wide use in the production of automotive seats, mattresses, shoe soles, refrigeration etc.
BPCL Kochi Refinery is in discussion with various global companies to finalise the technology for six different products. ``There is a huge demand for polyols and it is growing by over 10% per annum providing good scope for MSMEs to set up units for polyols-based products in the complex,’’ Panicker said.
The company’s first petrochemical project being constructed at a cost of Rs 55 billion is all set to begin operation by the middle of the year. It will produce acrylic acid, acrylates and oxo alcohol that are used in the manufacture of paints, super absorbent polymers, detergents, adhesives, sealants, solvents etc. The technology has been sourced from global companies like Mitsubishi, Air Liquide Global, and Johnson Mathey Davy.
Both complexes have been made possible after the integrated refinery expansion project (IREP), recently dedicated to the nation by the Prime Minister Narendra Modi, that will raise the capacity of the refinery to 15.5 million tonnes from 9.5 million tonnes. The propylene produced after the expansion is the main feedstock of the petrochemicals.
The refinery now has the capacity to produce 500,000 tonnes of propylene and 100,000 tonnes of ethylene. The entire quantity of propylene will be used for the two petrochemical complexes. `` The two projects will result in Rs 130 billion forex savings per annum for the country,’’ Panicker said.
BPCL Kochi Refinery is slated to complete its fuel upgradation project to comply with BS-IV norms by February next year. The project cost is around Rs 33 billion. The country is expected to move to BS-VI automotive fuel by April 2020.
