Promoters of pioneering petrochemicals venture visit Hambantota site

Wednesday, 29 February 2012 00:02 -     - {{hitsCtrl.values.hits}}

The promoters of the pioneering petrochemicals venture last week visited the planned project site in Hambantota as well as the facilities at the Magampura International Port.

The venture, Hambana Petrochemicals Ltd. (HPL), promoted by Singapore-based Peak Energy, will involve the setting up one of the world’s largest single location PET resin manufacturing plants.

The visiting delegation comprised a representative of the key buyer of HPL’s output when the venture begins commercial operations in late next year.

A spokesman for HPL said the visit was to see firsthand the progress of the Hambantota Port development and ancillary facilities. Chief Engineer of the Sri Lanka Ports Authority as well as Hambantota Port Project officials were also associated with the delegation during the visit.

Contracts connected to the venture which will put Sri Lanka in the global petrochemical map are being finalised following the approval of the Board of Investment.

The envisaged investment is US$ 150 million and HPL will be using the latest energy and cost efficient technology known as MTR (Melt To Resin), provided by Uhde Inventa Fischer, a leading German firm owned by Euro 45 billion worth Thyssen Group.

In the first phase alone, which is expected to be completed within two years, HPL will have foreign exchange revenues in excess of $ 1 billion and with the second phase the revenues will cross $ 2 billion.

In the second phase, HPL will set up a one million tonne PTA (Purified Terephthalic Acid) plant as part of its backward integration plant and further expand Petrochemical downstream activities in country.

HPL believes its flagship venture will turn Hambantota into Singapore, where good infrastructure paved the way for Exxon, Shell and other majors to set up shop.