Exports Commenced from OPaL’s Dahej Plant to Singapore

ONGC Petro Additions (OPaL) has initiated exports to Singapore and plans to float tenders for future exports of other products to different countries, thereby increasing demand for Naphtha globally.

India: The first batch of butadiene was exported to Singapore by OPaL and the company intends to cater to future exports by floating global tenders for each product. This is the single largest petrochemicals plant operating in the country with annual capacity of 1.4 lakh metric tons of polymers, low and high density polyethylene, polypropylene and 5 lakh metric tons of benzene, butadiene and pyrolysis gasoline, among other petrochemical products. The plant was setup at a cost of 30,000 crores and intends to generate annual revenue of 16,000 crores operating at full capacity.

TechSci Research forecasts that increasing petrochemical production from OPaL will lead to increased naphtha demand in India. The primary use of naphtha is gasoline blending to improve octane number. Naphtha is used as feedstock by OPaLl, where it undergoes steam cracking to produce light petrochemical products (ethylene, propylene, & Butadiene) and reforming to produce aromatic petrochemical products (benzene). OPaL currently sources naphtha from IOCL Koyali refinery.

According to released report of TechSci Research, “Global Naphtha Demand Supply Analysis, By End Use, By Region, Forecast & Opportunities, 2011 – 2026”, global naphtha consumption is projected to reach 960 million metric tons by 2026, on account of increasing production of aromatics and gasoline. Asia-Pacific accounted for the largest share in global naphtha consumption, owing to growing demand from countries where consumption of gasoline and petrochemicals is set to rise during the forecast period.