India to add more petrochemical capacity: Dharmendra Pradhan
New Delhi: Leveraging the new refinery capacity being added by state-run oil companies, India is set to build new petrochemical complexes that will help to develop the country as a polymer hub like Houston, Jurong Island or Shanghai, the oil ministry stated on Saturday.
“The government is planning to set up petrochemical clusters in Eastern, Western and Southern India to spur the growth of the sector with a view to meeting the increasing demand for polymers and specialty chemicals across diverse industrial segments,” the ministry stated quoting oil minister Dharmendra Pradhan who inaugurated a petrochemicals conclave in Gandhinagar on Saturday.
With surplus refinery capacity, large quantities of refinery by-product naphtha, a liquid hydrocarbon used as building block in the petrochemical industry, have been freed up for value addition, Pradhan said. “With the synergy of feedstock availability, public sector oil and gas companies have invested in a big way in world-scale petrochemical complexes, and will continue to do so,” the statement said quoting the minister.
The $50 billion petrochemicals market in the country, representing 30 million tonne-a-year demand, is expected to grow 9% annually to reach 40 million tonne-a-year market of $65-70 billion revenues by 2019-20, the statement said quoting the minister.
Overall, the petrochemicals market in India is expected to grow at a compounded annual growth rate of 1.5 times that of gross domestic product in the next 10 years, the statement said.
State refiners have a 230 million tonne-a-year refining capacity and a petrochemical production capacity of 915 million tonne-a-year, which are being expanded.