Manufacturers

IIICorp Opportunity of the Week: Andhra Pradesh in talks with Chinese firms for partnership in its proposed USD 16bn hydrocarbon complex

The State Government of Andhra Pradesh(AP) is in talks with Chinese partners for a potential partnership to develop its proposed USD 16bn cracker complex in the port town of Machilipatnam.

“We had a Chinese delegation representing a potential consortium partner inspecting the land proposed for the Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR),” said CHSS Prasad, Chief General Manager (Projects), Andhra Pradesh Industrial Infrastructure Corporation (APIIC). APIIC is the nodal agency implementing the project along with Vishakhaptnam Development Authority and the industries department of the AP state government. He however declined to share further details of the potential partner, citing confidentiality.

The plan is to put together a consortium of state-owned oil companies, exploration firm Oil and Natural Gas Corporation Limited (ONGC) along with private global players who have expertise in developing a facility of this magnitude. This news service had earlier reported that Dubai-based Al Kharash Contracting Co was one of those global players that had showed initial interest.

In a cracker complex of this scale, the refinery, or the mother cracker, creates raw material or feedstock for several chemical-making units, where the end-user industries involve polymers and pharmaceuticals, among others. Once completed, this will be India’s largest cracker unit with a capacity of 10 million metric tons per annum (MMTPA).

An industry source said a mother cracker complex of this size will open up opportunities to equipment suppliers from developed markets in the US and Europe. According to a previous working paper published by the Indian Council for Research on International Economic Relations (ICRIER), India currently has three naphtha-based, three gas-based, and one mixed-feed cracker units with a combined ethylene capacity of 3.3MMTPA.

The major feedstock used in petrochemical units is naphtha and natural gas (propane and butane), while the major intermediate products produced in the country are ethylene, propylene, butadiene, benzene, toluene and xylene, which are used in a variety of industries.

 

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Upcoming ICorp Events and Conferences

The ICorp team have been on the road recently, from Singapore, to Miami, to Rome, to Philadelphia. Our founder and CEO, Charlie Welsh, had the opportunity to speak as a panelist at the Association of Trade & Forfaiting in the Americas annual gathering (pictured below). We also recently attended the Special Libraries Association Conference and TXF Conference at the Four Seasons Rome. These have provided valuable forums  for sharing insight with our peers and colleagues. We’re proud to have the opportunity to showcase our product, the world’s first foreign industrial equipment supplier funding origination platform.

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ICorp will be attending and exhibiting at several conferences, expos and events in the coming weeks, so please be sure to visit our blog, homepage and Linkedin page for regular updates.

In the next month, find us at:

June 23-26      American Library Association Conference – Orlando, Florida

July 13-15         Business Librarians Association Conference – London, UK

July 16-19        American Association of Law Libraries Annual Conference – Chicago, Illinois

Are you attending or exhibiting at any of these? Be sure to connect with us on Linkedin or send us your details via our webform.

 

 

Obama/Modi meeting shows signs of promise for US suppliers in the nuclear space

Tuesday’s meeting between Indian Prime Minister Narendra Modi and President Obama resulted in milestone agreements on climate change, nuclear power and national security. US and Japanese energy equipment suppliers have been lobbying Modi’s government for reform in the sector, and are undoubtedly optimistic following the outcome of this week’s meeting between the two heads of states. Amendments to India’s nuclear power laws would represent a big win for various US equipment/tech suppliers in the nuclear space, including Curtiss-Wright and Westinghouseobama.

ICorp published a story prior to Tuesday’s meeting, indicating these two major players’ current dealings within the region and the potential for major opportunities in the Indian energy sector:

Curtiss-Wright Corporation is slated to win pump supply deals in India worth more than USD 300m once Westinghouse Electric Corporation finalizes negotiations to build six AP1000 nuclear reactors across the country.

Westinghouse is a subsidiary of Toshiba Corporation. In March, the Pittsburgh, Pennsylvania-based company’s CEO told Reuters he expects to sign a deal in June to build six AP1000 nuclear reactors across India.

However, it remains unclear as to whether Westinghouse will land the reactor supply deals as early as June. The company and its suppliers are hesitant to do business in India because the country passed a law in 2010 that might render equipment suppliers accountable for nuclear power plant accidents, not just the facilities’ operators. The law would have to be altered or nixed altogether before Westinghouse is likely to do business in the country, according to Curtiss-Wright director of investor relations Jim Ryan.

“That law is the reason why India has built less nuclear facilities than China,” he said.

 

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