The chemical industry has decided to form a core group to suggest a road map and short term and long term measures along with the current status and future requirements for alternative feedstock for the Indian petrochemical sector.

The decision was taken at a recent meeting of the industry regarding feasibility study on feedstock options for petrochemicals.

The core committee will comprise members of CPMA, EIL, HPCL, GAIL, IOCL and Dehradun-based Indian Institute of Petroleum (IIP).

The Department of Chemicals and Petrochemicals (DCPC) had assigned the study to IIP so as to identify potential feedstock for petrochemicals from conventional refinery process streams as well as non-conventional sources. IIP has already submitted its report to the DCPC.

This meeting was called to discuss the report and issues related to alternative feedstocks, including options being explored by the industry in this regard.

At the meeting, the DCPC said that Indian petrochemical units are mainly using naphtha or natural gas as feedstock but the industry does not have the advantage of cheap feedstock.

It may be mentioned here that in India, currently both naphtha and natural gas constituents are used for the manufacture of petrochemicals. India does not have feedstock advantage unlike some other big players, like in the Gulf. Against this backdrop, availability of feedstock with all its alternates assumes importance.

The CPMA said that the report has provided a very generalised outlook into various feedstock options. However, there is no exposition of fundamental issues relating
to alternative feedstocks. There are also no specific details about the current steps being taken by the industry in this direction. Further, it also does not address the environmental concerns relating to coal as an alternative feedstock.

HPCL suggested that naphtha is the only option for feedstock while shale gas can be considered as a future option.

EIL was of the opinion that naphtha is a costly feedstock and hence it is important that focus should be on integrating refinery and petrochemical complex which is a worldwide practice also.

GAIL said that getting coal for gasification does not seem probable in near future as the supply of coal is currently almost entirely tied up with power plants.

After detailed deliberation it was decided to form a core group which will suggest a road map and short term and long term measures along with the current status and
future requirements for alternative feedstock for the Indian petrochemical sector.