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CPC Taiwan Mulls Setting Up Petrochemical Complex in India

State-run oil company CPC Corp, Taiwan has announced a move to study the feasibility of building a new petrochemical complex in India at a planned total cost of US$6.6 billion, as part of its efforts to support the Taiwan government's New Southbound Policy aimed at strengthening economic and trade ties with countries in Southeast and South Asia. CPC president Lee Shun-chin is now in India meeting with India's petroleum and natural gas minister Shri Dharmendra Pradhan and state-run Indian Oil Corp Limited (IOCL) chairman Sanjiv Singh to exchange views on the CPC's prospective petrochemical complex project in India, company sources said.

 

During the meeting, the India minister expressed hopes that CPC Taiwan can build partnerships with IOCL, including setting up a joint venture petrochemical plant, with IOCL to provide naphtha and other materials for processing. The minister also suggested that both sides sign a non-binding letter of intent on cooperation to facilitate follow-up negotiations on commercial cooperation. CPC's Lee said that his company has commissioned an international consulting company to assess the feasibility of its investment in two optional locations in India, and will determine whether to carry out the investment project after weighing the feasibility reports, economic benefits, cooperative partners, and suggestions from the midstream and downstream firms of Taiwan's petrochemical industry.

 

Meanwhile, in order to comply with the government's energy transformation policy, CPC has also decided to join forces to explore Australia's Ichthyst natural gas field boasting natural gas reserves of over 300 billion cubic meters and 500 million barrels of condensate gasoline, with the production period for the field to last 40 years. CPC could secure an annual supply of 234,000 tons of liquefied natural gas, 43,000 tons of liquefied petroleum gas and 958,000 tons of condensate gasoline after the gas field starts commercial production in September 2018.

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