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| Tamilnadu Petro to set up plants in West Asia, S'pore |
| TE Narasimhan / Chennai Oct 05, 2009, 21:12 IST |
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Tamilnadu Petroproducts Ltd (TPL) is planning to set up linear alkyl benzene (LAB) and normal paraffin projects in West Asia and Southeast Asia. The projects will entail an investment of $335 million (around Rs 1,600 crore).
TPL is a Chennai-based public limited company jointly promoted by the Tamilnadu Industrial Development Corporation (Tidco) and Southern Petrochemical Industries Corporation Limited.
“With a view to capitalising on company’s crore strength of LAB business, we has envisioned to be a dominant producer by building new capacities in regions where there would be scope for growth. Thus West Asia and Southeast Asia have been identified for the projects,” a company source said.
The proposed plants would be set up by Certus Investment and Trading Ltd (CITL), Mauritius, a special purpose vehicle floated by TPL for overseas investments and Proteus Petrochemicals, formerly TPL India Singapore Pvt Ltd.
The LAB project is likely to come up in Yanbu Industrial City, United Kingdom of Saudi Arabia. The project includes an 80,000-tonne per annum standalone plant along with associated utilities and offsite facilities. It would involve an investment of $210 million (around Rs 1,029 crore) and is scheduled to begin commercial production in the first quarter of 2012.
“Discussions have also been initiated with the Royal Commission of Yanbu for site allocation. The equity investment in the project company would be made through Gulf Petroproducts Company, in which CITL will have a 50 per cent holding,” the source said.
On the other hand, the normal paraffin project would come up in Singapore and have a capacity of 100,000 tonnes per annum. The total project cost would be around $125 (around Rs 612 crore), to be funded through debt (70) and equity (30).
CITL had earlier signed a JV agreement with a West Asian investor for taking up 44 per cent equity in the project. However, it did not materialise as certain conditions put forth by the investor were not acceptable to the company.
The normal paraffin plant will be located at Jurong Island, the site possession of which has been completed. It has received in-principle clearance from the National Environment Agency, Singapore, for the project.
Proteus is also in negotiations with US-based Universal Oil Products, the licensor for the proposed normal paraffin project, for entering into related licensing and engineering agreements.
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