Assam Petrochemicals to Ramp up Namrup Plant Capacity

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Researched by Industrial Info Resources (New Delhi, India)--Assam Petrochemicals Limited (BSE:506267) (APL) (Namrup, Assam), which is owned by the government of the Indian state of Assam, has firmed up its plans to expand the capacity of its Namrup plant in Assam with the addition of a new methanol unit and an acetic acid unit. The chemical complex already has an operational methanol unit with a capacity of 33,000 tons per annum.

The new methanol unit would have a capacity of approximately 165,000 tons per annum and will use natural gas as a feedstock. The acetic acid unit will have a production capacity of 66,000 tons per annum and will be based on a methanol carbonylation cycle. Both the units are expected to commence commercial production by the end of 2014.

APL, along with project management consultant Tata Consulting Engineers Limited (TCE) (Mumbai, India), has completed the Techno-Economical Feasibility Report for the proposed units. APL recently selected a leading public-sector engineering consultancy firm for setting up the methanol unit and the work order is likely to be issued within two months, while the company is still scouting for a technology provider for the new acetic acid unit.

APL has entered into a long-term agreement with state-owned Oil India Limited (BSE:533106) (OIL) (Noida, Uttar Pradesh) to source 500,000 metric standard cubic meter per day of natural gas to meet the feedstock requirement of the upcoming units. OIL will supply gas to the units from its gas fields located in the state.

According to APL sources, the company has chalked out a long-term plan to build several downstream units based on methanol, acetic acid and formaldehyde. Products such as sulphonated formaldehyde will be processed from formaldehyde, while di-methyl-ether and bio-diesel plant would be based on methanol stream. The acetic acid stream will produce vinyl acetate monomer, polyvinyl acetate and polyvinyl alcohol. The Namrup plant presently has a methanol unit and a downstream formaldehyde unit, each having a capacity of 33,000 tons per annum.

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