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BP Plc to source 5mn tonne crude for Spice Energy

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 9:47 PM IST

"We have signed a framework agreement with Indonesia's Pertamina for sourcing liquefied natural gas for the Haldia import and regassification facility we plan to set up by 2011," Spice Energy CEO Ravi Chilukuri said.     

Spice Energy is setting up a 2.5 million tonnes facility that will sell gas to fertiliser plants in West Bengal.     

In the same port city, Cals Refineries, the BSE listed firm where Spice Energy promoters hold just under 15 per cent stake, is relocating a 5 million tonnes refinery from Germany by first quarter of 2010.

It would get BP to commit 2.5 million tonnes a year of heavy crude and a similar quality of light crude, he said.     

He said Spice Energy had also signed a deal with Indonesian miner PT Tambang Batubara Bukit Asam Tbk to buy 6 million tonnes of coal a year for 20 years from 2011 for its proposed 1,000 MW thermal power plant at Cuddalore in Tamil Nadu.     

The power plant would be set up in 32-36 months at a cost of $1.1 billion.     

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BP would buy most of the petrol and produced by Spice Energy's Haldia refinery, for sale in Asia Pacific region.

"BP has agreed to take 65 per cent of the refinery throughput and the remaining, comprising mostly of LPG, aviation fuel, naphtha, proplene and pet coke, will be sold domestically.     

The refinery capacity will be doubled 2011.

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First Published: Jul 14 2008 | 1:50 PM IST

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