India's Mfar and Oman Oil Company to Build Propylene Oxide Plant in Kerala

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Researched by Industrial Info Resources (Sugar Land, Texas)--A joint venture between Mfar Constructions (Bangalore, Karnataka), state-owned Oman Oil Company (Muscat, Oman), Kochi Refineries Limited (Cochin, Kerala), and Kerala State Industrial Development Corporation (KSIDC) (Thiruvananthapuram, Kerala) is planning to build a new plant in Cochin, Kerala, to produce propylene oxide and associated derivatives.

The companies in the joint venture have signed a memorandum of understanding to proceed with development of the plant, which will be located near the Cochin refinery in the southwestern state of Kerala, India.

Feedstock for the new plant will be supplied through a connecting pipeline from the Cochin refinery, which has a production capacity of 7.5 million tons per year and produces a wide range of petroleum products, including liquefied petroleum gas (LPG), petrol and diesel, as well as propylene, which will be used as feedstock for the new plant. The new plant will produce propylene oxide and derivatives such as propylene glycol.

Kochi Refineries is 66% owned by Bharat Petroleum Corporation Limited (BSE:500547) (Mumbai), which also operates a 12 million-ton-per-year refinery in Mumbai. Oman Oil Company is wholly owned by the government of Oman and was incorporated in 1996 to follow through with investment opportunities both within and outside Oman.

Mfar Constructions is a part of Galfar Engineering and Contracting Company SAOG (MSM:GECS) (Muscat), a leading construction company in Oman and the Arabian Gulf region with a turnover of more than $1 billion. Galfar is involved in project management, engineering, procurement and construction in the oil and gas industries. The company is also active in the construction of power transmission networks and substations, water supply and sewer works.

KSIDC was formed in 1961 with the idea of assisting the development of medium- and large-scale industries in Kerala. The company is wholly owned by the state government of Kerala and has a core group of professional staff in the fields of engineering, management, finance and law, enabling it to provide well-rounded services to investors.

Propylene oxide is a colorless, volatile liquid used mainly in the production of polyurethane plastics. About 60% to 70% of propylene oxide produced is used in the manufacture of these plastics, while 20% is used the production of propylene glycol, which finds application as a moisturizer in medicines, toothpaste, cosmetics, surface coatings as an anti-freeze agent. Polyurethane is used to manufacture flexible foams in furniture, bedding, transportation and carpet underlay.

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