India’s state-owned Mangalore Refinery and Petrochemicals Ltd. (MRPL) has initiated the process of integrating the operations of ONGC Mangalore Petrochemicals Limited (OMPL).
MRPL is an oil refinery in Mangalore, also known as Mangaluru, in the chief port city of the state of Karnataka, and is a subsidiary of the Oil and Natural Gas Corp. (ONGC) which owns 71% of the company. OMPL is a greenfield petrochemical project at the Mangaluru Special Economic Zone, adjacent to MRPL’s own 15 million metric tonne per annum (MMTPA) refining and petrochemical complex. OMPL’s petrochemical complex, which was recently commissioned, can produce 914 kilo tonnes per annum (KTPA) of paraxylene and 283 KTPA of benzene. MRPL currently owns the controlling stake of 51% in OMPL, while ONGC holds the remaining 49%.
MRPL’s board approved the integration of OMPL, its subsidiary company, last July.
Integrating the operations of the aromatic plant with the refinery will add value to the refinery product streams and flexibility to the refinery, as well as optimize gross refining margins (GRM), MRPL Chairman D. K. Saraff said.
“A scheme of amalgamation of OMPL with the company has been proposed for approval of various regulatory authorities. The synergy between OMPL and MRPL will provide higher returns for stakeholders, adding further value to the product streams of your refinery and flexibility to increase its GRM, [as well as] optimal utilisation of the plants of MRPL,” he said.
Saraff sddressed the company’s 27th Annual General Meeting in Mangaluru over the weekend.