Kolkata: Haldia Petrochemicals Ltd (HPL) plans to invest an additional Rs 2,000 crore to expand its phenol production capacity in Haldia. The company has signed a licence amendment with Lummus Technology regarding its upcoming phenol and acetone plant.
The agreement was signed by Navanit Narayan, whole-time director & CEO of HPL, and Romain Lemoine, chief business officer of Polymers and Petrochemicals, Lummus Technology. It aims to enhance HPL's phenol production capability from 300 KTPA (kilotons per annum) to 345 KTPA. HPL had signed an agreement with Lummus last year for Rs 3,000 crore.
"The proposed investment of Rs 3,000 crore was an early estimate of the hard cost before the detailed engineering of the project and didn't include GST, start-up costs, etc. Further, the phenol project has also been integrated with the Olefin Conversion Unit (OCU) to ensure uninterrupted feedstock supply to the phenol unit. The revised project cost also includes utility and infrastructure augmentation, including pipelines needed for the OCU and phenol unit," a company source said.
HPL is also focusing on cumene and acetone production to meet rising domestic demand and foster downstream chemical sector growth. The facility also includes India's first on-purpose propylene plant using olefins conversion technology (OCT), which Lummus will supply as well. HPL aims to complete the project by Q1 2026.
Navanit Narayan, WTD & CEO of Haldia Petrochemicals Limited, said, "Our collaboration with Lummus Technology has enabled us to enhance production capabilities and address India's expanding demand for phenol and acetone."
Romain Lemoine, chief business officer of Polymers and Petrochemicals, Lummus Technology said, "We are proud to support HPL in scaling up its operations."