Tamilnadu Petroproducts to set up petrochemical plant in Singapore

New Delhi, June 6 (UNI) A susidiary arm of Tamilnadu Petroproducts Ltd (TPL) will set up a 110-million-dollar petrochemical plant in Singapore to manufacture 1,00,000 metric tonne (MT) of normal paraffin.

TPL's investment through its subsidiary will be 51 per cent of the stake, while Kuwait Finance House and Singapore's Economic Development Board will hold 44 per cent and five per cent respectively.

Availability of a long term supply of kerosene and reliability electricity which is costly in India was the reason behind choosing Singapore for plant set up.

Negotiations are in advanced stage with the Singapore Refining company for a deal to supply Kerosene.

Half of the normal paraffin to be produced will be exported to the company's plant in India, while rest will be sold in the open market.

The demand for normal paraffin is expected to grow considerably and industry sources estimate that there will be a shortage of 2,00,000 MT each year till 2010 in South-east Asia and Asia-Pacific.

UNI