Mangalore SEZ plans to invest Rs 4.5k-cr in petcoke project

Written by Sanjay Jog | Mumbai | Updated: Oct 21 2009, 05:11am hrs
Mangalore SEZ, which is being developed jointly by ONGCs arm Mangalore Refinery and Petrochemicals (MRPL), Infrastructure Leasing & Financial Services (IL&FS) and the Karnataka government, is exploring an option of converting petcoke into energy and high-value chemicals for its potential consumers, especially petroleum-based industries.

The project envisages an investment of Rs 4,000-4,500 crore. Global majors including Shell, Linde Gas have already expressed their desire for their involvement in the project.

Sources told FE, Petcoke, which is a residue of the refinery, will be used to produce power and high value chemicals like amonia, syngas, nitrogen, argon, sulphuric acid, methanol, acetic acid. MRPL has agreed to supply 1 million tonne of petcoke annually to Mangalore SEZ for this energy conversion effort. In India as many as 30 million tonne of petcoke is likely to be available in the years to come. Internationally, the petcoke technology through gasification is getting established.

A 200-mw of power project based on integrated gas combined cycle technology will be set up and the power to be supplied within the Mangalore SEZ. The petcoke in the gasification process would also consume fly ash from the nearby thermal power plant.

According to sources, Karnataka government, Mangalore SEZ and IL&FS met on Wednesday to kick off the project development. The Mangalore SEZ through an international bidding process has selected the US-based Fluor Enterprises as technical consultant for the upcoming petcoke-based power and high chemicals project. Fluor Enterprises, which delivers engineering, procurement, construction, maintenance (EPCM), and project management to governments and clients in diverse industries around the world, would carry out a feasibility study for the project by February 2010.

Moreover, Fluor Enterprises would also assist the Mangalore SEZ for the selection of BOOT (build own operate transfer) operator for the development of the proposed project. Sources noted that The actual cost, equity contribution and other financial and technical details will be decided after Mangalore SEZ receives feasibility report in February.

Sources said that till now all the refineries including Reliance Industries have been adopting an easier and commercial solution of selling the refinery residue to the nearby cement industries.