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Pakistan to build first naphtha cracker complex – PCMA

SINGAPORE (ICIS)--Pakistan is planning to set up its first petrochemical complex, which would include a naphtha cracker, in the next five to six years with an investment of $6bn-$8bn, according to the country’s chemical industry group.

“Work may start as soon as possible. Currently, we are trying to pull together a feasibility report. It [the complex] may take five-six years to complete,” Iqbal Kidwai, secretary general of the Pakistan Chemical Manufacturers’ Association (PCMA), told ICIS.

“The government will provide the funding, starting with the seed-money. It can also adopt the mode of public-private partnership, depending on the interest,” he added.

PCMA will prepare the feasibility study of the complex, and also work on request for proposals (RFPs), which should have a business plan with complete specifications and timetable for the NCC project. Pakistan’s Planning Commission will then advertise the RFPs in newspapers.

In an exclusive meeting between PCMA and Pakistan’s federal government planning minister Ahsan Iqbal held on 18 January this year, “a historical decision of putting in place [a] naphtha cracker complex was taken”, according to the minutes of the meeting obtained by ICIS.

“The minister instructed his team to announce this approval in principle affirming that [the] government was determined to establish Naphtha Cracker Complex (NCC), acknowledging it as a strategic need,” it stated.

The NCC will be integrated with a petrochemical complex that will produce polypropylene (PP), polyethylene (PE), ethylene glycol, paraxylene (PX), and few other high-value products in the beginning, Tahir Qadir, chief consultant at PMCA, said in a separate e-mail.

The NCC is going to be based mainly on naphtha as the country exports 1m tonnes/year of the material, but may also be able to utilise different feedstock or a mix of feedstock, Qadir added.

Pakistan with a population of about 200m people does not have any petrochemical complex, and relies mostly on imports to meet domestic needs for chemicals.

However, with the start of work on projects falling under the China-Pakistan Economic Corridor (CPEC), the south Asian country’s hunger for petrochemicals is set to rise.

The CPEC involves the construction of geographical linkages to improve road, rail and air transportation systems between China and Pakistan and already projects worth more than $50bn have been identified by the two countries.

Kidwai said a cracker and petrochemical complex were essential for Pakistan to meet the growing needs of the country.

“I am sure due to CPEC factor, and this being the first ever naphtha cracker plant, its viability is not a question,” he added.

“This [cracker complex] is a dream we have…this is our need, and we are determined to have it.”

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Pakistan to build first naphtha cracker complex – PCMA

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