Super Petrochemical Pvt Ltd (SPPL), a concern of TK Group, and SK Group of South Korea plan to invest $2.5 billion jointly to establish a petrochemical complex and an LPG terminal in Moheshkhali.

“We are planning to implement the project in phases,” said Mohammad Mustafa Haider, managing director of Super Petrochemical Pvt Ltd.

“However, we intend to implement the LPG terminal project by 2021,” he told The Daily Star.

Under the joint venture, a full-fledged petrochemical, chemical storage facilities and liquefied petroleum gas (LPG) terminal will be set up in the island.

“We initially estimated the investment amount to reach $2.5 billion. The amount will be finalised after conducting a feasibility study,” said the businessman, who is also a director of TK Group.

The project is financially viable, according to another feasibility study conducted by the Engineers India, a Delhi-based company, Haider said.

The entities have sought land from Bangladesh Economic Zones Authority (Beza).

The Beza has also agreed to allocate 410 acres of land in Moheshkhali-3 Economic Zone.

The Beza would hand over the letter of land allocation to Super Petrochemical today so that it can start construction work as soon as possible, according to Paban Chowdhury, executive chairman of the authority.

“It is a big investment and it will be helpful for plastic manufacturers, power companies and others sectors,” he told The Daily Star.

According to Haider, the project once fully developed will create 2,500 jobs directly.

SPPL is the largest producer of petroleum and petrochemical products in the private sector in Bangladesh.  It produces and supplies fuel oil to state-run Bangladesh Petroleum Corporation. The company caters for 60 percent of local demand for octane. Besides, it produces petrochemical products such as toluene and xylene used in making paints, inks and adhesive.

The project—which will produce a lot of raw materials for plastic goods—will also encourage many small and medium enterprises to invest in the plastic sector, he said. Local investors will be able to use raw materials to set up LPG-based or dual fuel power plants, he said.

TK Group is one of the largest and diversified business conglomerates in Bangladesh, with 42 active business units and more than 12,000 employees.