Haldia Petrochemicals works to raise up to a 30 % the capacity to replace naphtha with liquefied petroleum gas(GLP) in its cracking unit. The Indian petrochemical company seeks to gain flexibility in the face of supply disruptions from the Middle East linked to the conflict between the United States and Iran.
The company is currently working with Enchantment in the adaptation of its naphtha-fed cracker, the goal is to allow a greater proportion of LPG to be used as a feedstock within the petrochemical process.
Navanit Narayan, CEO of Haldia Petrochemicals, indicated that the company expects to have a defined plan by the end of the year. The decision comes in response to recent difficulties in securing naphtha supplies from various Gulf suppliers.
The Strait of Hormuz is putting pressure on the gasoline supply
Restrictions on the transit of cargo through the Strait of Hormuz this forced Haldia Petrochemicals to resort to the spot market to supplement its raw material needs, the company maintains long-term naphtha supply contracts with QatarEnergy, Kuwait Petroleum Corp y ADNOC Global Trading however, the reduction in maritime traffic through the Strait of Hormuz complicated the arrival of these volumes. Faced with this situation, the company managed to receive some shipments of petroleum products from the United Arab Emirates in Vizag via medium-range tankers. This type of tanker can carry up to 35,000 metric tons Haldia is also continuing to explore alternatives to mobilize the contracted volumes from Qatar.
Haldia Petrochemicals increases its commitment to LPG
In this scenario, increasing flexibility to process GLP this would allow for a partial reduction in dependence on naphtha within petrochemical production. Both raw materials are used in processes designed to obtain products that are subsequently used to manufacture plastics, automotive components, and other derivatives.
To cover some of its needs, Haldia Petrochemicals plans to acquire LPG in India through Indian Oil Petronas Limited (IPPL) this company operates a facility adjacent to the Haldia industrial complex. The Indian petrochemical company is also exploring importing LPG from various sources to diversify its supply and reduce its exposure to potential logistical disruptions in the Middle East.
Greater flexibility for the petrochemical complex
Haldia Petrochemicals operates in West Bengal a ethylene plant with the capacity to 700,000 tons per year the complex also has an annual chemical processing capacity of 491,000 tons and with a capacity close to one million tons of polymers the company also plans to inaugurate an acetone and phenol plant in October. The cracker modification reinforces a strategy aimed at having more feedstock options, a greater share of LPG would allow Haldia to adjust its operations when the naphtha supply is limited by logistical or geopolitical issues.
Source: Hydrocarbon Processing
Photo: Shutterstock
