Naphtha cracker unit at Panipat

IOC starts $3.2-billion Panipat unit

Indian Oil Corporation (IOC) started a $3.2-billion naphtha cracker in
Panipat, Haryana to meet demand from plastic makers.

"Our main unit at Panipat was commissioned last month." Serangulam V
Narasimhan, director of finance, said by telephone on Thursday
"Commissioning of the other smaller units should be completed by
April."

IOC may cut exports of naphtha as the refiner uses the oil-product as
feedstock at the plant to produce ethylene and propylene. Demand for
petrochemicals, used to make cars and home appliances, is increasing
as economies emerge from the worst financial crisis in 70years.

The nation's second biggest refiner will use more than 2 million tonne
(mt) of naphtha when the cracker operates at its full capacity
Narasimhan said. The plant will have a capacity to produce 8,57,000
tonne of ethylenea year and 650,000 tonne of propylene.

Exports of naphtha rose 26% to 8.7 mt in 11 months to Feb 28, compared
with the year-earlier period, according to provisional data on the Web
site of the petroleum planning and analysis cell, a department of the
oil ministry Bloomberg.
Financial Express Mumbai April 2, 2010 P-11