Bharat Petroleum Corp. Ltd. (500547.BY) on Thursday said it has signed a joint venture pact with South Korea's LG Chem Ltd. (051910.SE) to set up a petrochemical plant near the Indian company's Kochi refinery complex.
The state-run oil marketing company said it plans to spend up to 140 billion rupees ($2.51 billion) over the next five years to expand its Kochi refinery.
Under its expansion plan, the company will set up a petrochemical fluid catalytic cracker, which will generate 500 thousand metric tons per annum of propylene, to help the company diversify into petrochemicals.
The cracker project will be set up via the joint venture at an additional cost of INR40 billion to INR50 billion, and is expected to be completed in the next four years alongside the refinery expansion plan, the company said.
Write to Ashutosh Joshi at firstname.lastname@example.org
Copyright (c) 2012 Dow Jones & Company, Inc.