Commodity Online

NEW DELHI: Energy giant BP Plc is likely to set a co operation with Cals Ltd, a Spice Energy holding company for its proposed five million tonns oil refinery at Haldia near Kolkata.

A Cals Ltd release said that the company is planning to tie up with the BP Plc for supplying crude oil to the proposed five billion dollar refinery.

Cals plans to export petrol and diesel produced in the Euro 4 complaint refinery and BP may sign an offtake agreement for these two products, it said. The refinery would also produce jet fuel, LPG and pet coke for the domestic market.

Cals Ltd plans to import a 90,000 barrel per day refinery from Bayernoil, Germany, which will be dismantled at Ingolstadt on the river Danube, Germany and shipped to Haldia for reconstruction. The refinery will become Bengal's second largest oil refinery after the Indian Oil Corporation's existing one in Haldia.

The company plans to commission the refinery by end 2009. Cals Ltd has hired UK refinery engineers KBC to upgrade the plant, to be able to refine lower quality crude oil.