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ONGC plan to merge MRPL & HPCL gets delayed till 2024

January 19/2021

MOSCOW (MRC) -- Indias state run oil and gas explorer ONGCs plan to merge its refining subsidiary Mangalore Refinery and Petrochemicals Ltd ( MRPL ) with Hindustan Petroleum Corp Ltd (HPCL) has got delayed, according to Kemicalinfo with reference to a report by IANS.

The process is now expected to be complete by 2024.

The merger was aimed at aligning ONGCs upstream and downstream operations into two verticals. But ONGC has decided to consolidate its refining and petrochemicals business around MRPL first before going for the merger.

According to IANS, the process of merging the two oil refining subsidiaries would start only after the company completes merging ONGC Mangalore Petrochemical Ltd (OMPL) with MRPL.

Company sources said that the merger of HPCL and MRPL under conservative assumptions could happen by end of 2024 as the MRPL-OMPL merger has to happen first and that the business should continue for five years with late 2019 as the effective date of their merger at the least.

The merger could begin within next two years as OMPL is likely to get merged with MRPL by then.

Last October, MRPL board approved the acquisition of 49% stake in OMPL making OMPL a 100% subsidiary of MRPL.

As MRC informed earlier, in 2015, MRPL initiated its downward integration by amalgamation with OMPL.

OMPL is the largest single stream unit in Asia producing 914 KTPA paraxylene and 283 KTPA Benzene.

Mangalore Refinery and Petrochemicals Limited (MRPL), is an oil refinery at Mangalore and is a subsidiary of ONGC, set up in 1993. The refinery is located at Katipalla, north from centre of Mangalore city. The refinery was established after displacing five villages of Bala, Kalavar, Kuthetoor, Katipalla, and Adyapadi.

PX is a feedstock for the production of purified terephthalic acid (PTA). PTA is used to produce polyethylene terephthalate (PET), which, in its turn, is used in the manufacturing of plastic bottles, films, packaging containers, in the textile and food industries.

According to MRC's ScanPlast report, Russia's estimated PET consumption reached 61,110 tonnes in November 2020, up by 1% year on year. Overall consumption of PET in Russia reached 648,110 tonnes in the first eleven months of 2020, down by 18% year on year.


mrcplast.com
Author:Margaret Volkova
Tags:benzene, crude and gaz condensate, paraxylene (PX), PET-granulate, terephthalic acid, petrochemistry, packaging, MRPL, OMPL, ONGC, India, Russia.
Category:General News
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