Page 144 - CW E-Magazine (18-2-2025)

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FEEDSTOCK SOURCING

PLL signs agreement with Deepak Phenolics

for propylene & hydrogen supply

Petronet LNG Ltd. (PLL) has executed
defi nitive agreements with Deepak Pheno-
lics Ltd. (DPL), a wholly owned subsi-
diary of Deepak Nitrite Ltd., for the long-
term sale and purchase of propylene and
hydrogen. As per the agreement, signed
on 6th February 2025, PLL will supply
250-ktpa of propylene and 11-ktpa of hydro-
gen from its petrochemical complex in
Dahej to DPL over a 15-year period from
the date of the fi rst supply. “This strategic
partnership underscores our commitment
to innovation, operational excellence, and
long-term value creation while foster- for phenol as well, including for making and the market was historically served by
ing effi ciency and sustainable industrial foundry resins, alkylphenols and several two small producers (one of whom has
growth,” PLL said in a social media post. fi ne chemicals. Phenol’s high exposure shut). The fi rst signifi cant development
to the PF resins market in India – to the was the commissioning of a 200-ktpa
The two companies had signed extent of about 60% of total demand – sets it phenol (and 120-ktpa acetone) plant by DPL,
defi nitive agreements for the supply of the apart from elsewhere in the world, wherein at the end of 2018. While this did serve
feedstocks for DPL’s existing and upcom- bisphenol-A (BPA) represents half of to reduce the quantum of imports briefl y,
ing phenol/acetone plants on October 28, global phenol demand, and PF resins rep- India still remains a signifi cant importer
2024, an initial binding term sheet, which resent only a quarter. India has tradition- of both phenol and acetone, and several of
was approved by DPL’s board in December ally been defi cient in phenol and acetone, their derivatives.
2023. Demand for phenol in India has
traditionally been growing around GDP Sabinsa’s Kunigal manufacturing
levels – averaging a CAGR of about 7%.
Between 2019-20 and 2021-22, growth facility recognised for environmental
fell sharply – to about 4% annually – due
to COVID, but has since recovered to the sustainability
trendline growth.
Sabinsa, a multinational health efforts through the implementation of
The acetone market presents a more science company known for providing a Zero Liquid Discharge (ZLD) waste-
complex picture. Historical growth rates sustainable natural, well-researched water management system that ensures
have been lower than for phenol, at a ingredients, was recently honoured no industrial wastewater is released
CAGR of 4%. Again, Covid took a toll, by Karnataka State Pollution Control into the environment.
with demand decline seen in 2020-21 and Board (KSPCB) with the Environ-
virtually no growth in the ensuing year. mental Sustainability award for “out- “The support and guidance from
standing performance in environment, regulatory bodies like the KSPCB are
The prognosis for the near-term is bet- health, and safety” of the company’s instrumental in shaping our operations
ter, but only slightly so. In India, phenol Sami Kunigal manufacturing facility. and ensuring that we remain aligned
mainly serves as one of two raw materials with the best practices in safety and
for production of phenol-formaldehyde The award highlighted the site’s environmental management,” said
(PF) resins, which fi nd use as adhesive, safety compliance, fi re safety, health Shaheen Majeed, Global CEO & Man-
particularly in the plywood industry. and fi rst aid facilities, environmental aging Director of Sami-Sabinsa Group,
There are other relatively smaller end-uses compliance and water conservation in a statement released on the occasion.

144 Chemical Weekly February 18, 2025

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