Toyo LoA for MEG facility at Paradip
Mono Ethylene Glycol (MEG), used in the manufacture of polyester resins and automotive coolants, is expected to see global demand grow 6% annually until 2022.
Hoping to capitalise on this, IndianOil is on track to issue EPC tenders by early 2017 for its proposed Rs2500cr ($374m) MEG unit at the 15m t/y Paradip refinery and is shortly expected to issue a LoA to Toyo Engineering as its Project Management Consultant. Toyo bid lowest quoting Rs81cr ($12m) when IOC opened price bids on July 20 followed by favourite ThyssenKrupp Industrial Solutions at Rs82cr ($12.3m) and Engineers India at Rs90cr ($13.5m).
After Toyo gets the LoA it will first prepare a DFR for submission to IndianOil's Board after about three months. Once the Board gives financial approval, Toyo is likely to take another three months to prepare a FEED report detailing the capacity and other parameters and then issue EPC tenders.
Raw material ethylene will be sourced from the Paradip refinery. With the MEG unit, IndianOil is further diversifying into petrochemicals.