Unocal, Paharpur Link-Up For Rs 1580cr Haldia Unit

The multinational integrated energy resource company, Unocal, has tied up with Paharpur Fertilisers and Chemicals Ltd, a subsidiary of Paharpur Cooling Towers Ltd, and the West Bengal state government to set up a Rs 1580-crore ammonia-urea plant at Haldia. While both Paharpur and Unocal will each have a 45 per cent stake in the project, West Bengal will hold the balance 10 per cent.

The project will have a capacity to produce 1350 tonnes per day of ammonia and 2200 tpd of urea. Being governed by the retention price scheme, the promoters will be paid a cost-plus price for the urea produced at the plant.

The project would be based on import of natural gas from neighbouring countries like Bangladesh and Myanmar where Unocal has substantial presence. However, till the arrangements for the import of gas are tied up, it is proposed to use naphtha as feedstock, managing director of Paharpur Fertilisers and Chemicals A K Mukhopadhyay told the Business Standard yesterday.

He said the project proposal has already been submitted to the Central government and the promoters have sought the requisite clearance and naphtha linkage.

Mukhopadhyay emphasised that naphtha would be used as a feedstock only for a year or two till we start getting gas. However, he said, even this option would work out quite economical for the government since the plant could be given naphtha from the refinery next door. This way the government would be making a saving of Rs 15 crore every year on transportation of naphtha which would help it cut down on ballooning fertiliser subsidy.

Besides the proximity to the source of naphtha, Haldia has the advantage of being located in a state that does not have any worthwhile urea-manufacturing facility. Therefore, the project would have a ready market. Unocal has set up a wholly-owned subsidiary, called Unocal Bharat Ltd, in India. Besides supplying gas and liquid fuel in the country, the Indian subsidiary also plans to develop low-cost power projects and set up energy related infrastructure.

Unocal Corporation has 87 million tonnes of oil and 192,000 million cubic metres of gas reserves all over the world. It produces 31,200 tonnes of oil per day and 50 million cubic metres of gas per day. Moreover, its power plants produce 4,500 mw across the globe.

Unocal is also the worlds largest producer of geo-thermal energy for electricity generation.