The Chatterjee Group (TCG) is negotiating with both local and international companies to collaborate on a significant project with its major petrochemical subsidiary, Haldia Petrochemicals Ltd (HPL), according to HPL’s CEO.
The firm aims to develop a $10 billion oil-to-chemical facility in Cuddalore, Tamil Nadu, which will produce 3.5 million metric tons per year of ethylene and propylene by 2028 or 2029. HPL’s CEO, Navanit Narayan, stated that the project is anticipated to achieve financial closure by the end of 2024.
Narayan explained that enhancing the value of the chemical production is crucial, as there is a substantial market for these chemicals, many of which are currently imported into India, thereby offering better profit margins. HPL currently operates a 1 million tpy petrochemical plant in eastern India and is constructing the country’s largest integrated phenol project in Haldia.
In 2021, Haldia acquired a defunct oil refinery project in Cuddalore from Nagarjuna Oil, which had been inactive since a cyclone in 2011. The new project will process 1,20,000 barrels of oil per day.
With India’s expanding economy, the demand for petrochemical products like plastics, paints, and chemicals such as monoethylene glycol is rising. Indian firms are therefore increasing their petrochemical production capacities. Narayan noted that while western India is saturated with petrochemical projects, the south lacks a major facility to meet regional demand. He highlighted the economic development of the southern region as a significant advantage.
As reported by Reuters, India’s petrochemical consumption is about one-third of the global average, leading to heavy reliance on imports for specialty chemicals. Narayan emphasized that India’s industry, growing at over 7%-8% annually, requires a large-scale cracker facility every 18 months to meet demand.
