MOSCOW (MRC) -- Indian Oil says it will build an integrated paraxylene (PX) and purified terephthalic acid (PTA) facility at Paradip in Odisha State, India, at an estimated investment of 138 billion Indian rupees (USD1.84 billion), reported Chemweek.
The project will be completed by early 2024, with the complex planned to produce 800,000 metric tons/year of p-xylene and 1.2 million metric tons/year of PTA, it says.
The complex will be integrated with the company's refinery at Paradip. The PX and PTA facilities, along with a previously announced 357,000-metric tons/year monoethylene glycol (MEG) plant at Paradip, would provide feedstock for a 300,000-metric tons/year textile yarn manufacturing project at Bhadrak, Odisha, and will facilitate other textile and polyester projects in the region, Indian Oil says. The MEG plant is being developed with an investment of Rs47.87 billion and is due to be completed in early 2021. The company also plans to produce up to 50,000 metric tons/year of toluene, it says.
Indian Oil says that with the commissioning of both the PTA and MEG projects, “the petrochemical intensity index of Paradip refinery will increase to 14.7 from the present level of 4.5.” The company commissioned a 680,000-metric tons/year polypropylene (PP) plant in February 2019 at Paradip.
The complete ecosystem of bulk petrochemicals would be available in the petroleum, chemicals, and petrochemicals investment region (PCPIR), which would catapult Odisha's petchems industry to global standards, according to Indian Oil. Paradip has been identified as one of India's PCPIR zones.
Indian Oil is the anchor tenant at Paradip and the major source of feedstocks for downstream industries in the region. Odisha, located on India's east coast, has the potential to cater to increasing demand for chemicals and petchems in Southeast Asian countries, the company says.
As MRC informed before, the state-owned Indian Oil Corp Ltd shut its (PTA plant in India for maintenance in early-February, 2019. The plant remained under maintenance until end-February, 2019. Located in Panipat, India, the PTA plant has a production capacity of 550,000 mt/year.
PTA is used to produce polyethylene terephthalate (PET), which is used in the manufacturing of plastic bottles, films, packaging containers, in the textile and food industries.
According to MRC's ScanPlast report,Russia's estimated PET consumption totalled 367,720 tonnes in the first six months of 2020, up by 19% year on year. Russian companies processed 62,910 tonnes of material in June.
Indian Oil Corporation Limited, or IndianOil, is an Indian state-owned oil and gas corporation with its headquarters in New Delhi, India.