After failing to get South Korean LG Chemicals on board as a technology partner for its Kochi-based petrochemical project, Indian public sector refiner Bharat Petroleum Corporation Ltd (BPCL) said it will buy outright, the critical technology to produce speciality chemicals.
The critical technology is used in producing speciality propylene derivatives-based products such as acrylic acid and acrylates and used in textiles, plastics, paints, coatings, adhesives and inks.
"Since our plan to get the Korean major LG Chem on board as a technology partner for the petrochemicals project did not materialise, we have decided to purchase the technology for speciality propylene derivatives outright,” said BPCL Chairman S Varadarajan.
Speaking after Bharat Petroleum’s annual general meeting, he added, “Earlier this technology was not available for outright buying, but now the situation has changed with players ready to sell patented technologies and we are hopeful of concluding a deal within 2-3 months.”
Bharat Petroleum is setting up the Rs 5,000 crore petrochemical project next door to its Kochi refinery and will produce 250 million tons of speciality propylene derivatives products and also end India’s dependence on imports of these speciality chemicals.
A year after signing an agreement with BPCL in July 2012, LG Chemical walked out of the JV in August 2013 citing adverse international environment for large investments.
The petrochemical project is part of the Rs. 165 billion expansion that Bharat Petroleum is undertaking to upgrade and increase capacity at the refinery from 9.5 million tons to 15.5 million tons by December 2015.
At present, no Indian refinery has the know-how to make speciality propylene derivatives. (AR)
