In­dia’s big­gest oil re­fin­ery to cost $30 bil­lion, says IOC

THE RE­FIN­ERY WILL IN­CLUDE 3 CRUDE UNITS OF 20 MIL­LION TONNES EACH FOR PROD­UCTS SUCH AS PETROL, DIESEL

Resource Digest - - CONTENTS -

In­dia’s big­gest oil re­fin­ery that state-run IOC, BPCL, HPCL and EIL plan to set up on the west coast will cost $30 bil­lion or Rs.2 lakh crore, a se­nior of­fi­cial said. “The 60 mil­lion tonnes a year re­fin­ery and a mega petro­chem­i­cal com­plex will be set up in two phases. Phase-1 will be 40 mil­lion tons to­gether with an aro­matic com­plex, naph­tha cracker and poly­mer com­plex,” San­jiv Singh, Di­rec­tor (Re­finer­ies), IOC, said.

PHASE-I

Phase-1 will cost Rs 1.2-1.5 lakh crore and will come up in 5-6 years from the date of land ac­qui­si­tion, he said.

“The en­tire re­fin­ery will in­clude three crude units of 20 mil­lion tonnes each — first of these will be part of Phase-1. The mega com­plex will re­quire 12,000-15,000 acres of land and twothree sites on coast of Ma­ha­rash­tra are be­ing ex­plored,” he said. The se­cond phase will cost Rs.50,000-60,000 crore.

IOC has been look­ing at the west coast for a re­fin­ery as cater­ing to cus­tomers in West and South was dif­fi­cult with its re­finer­ies mostly in the North. HPCL and BPCL have also been look­ing at a big­ger re­fin­ery be­cause of con­straints they face at their Mum­bai units. “The re­fin­ery will pro­duce petrol, diesel, LPG, ATF and feed­stock for petro­chem­i­cal plants in plas­tic, chem­i­cal and tex­tile in­dus­tries in Ma­ha­rash­tra,” he said.

Fif­teen mil­lion tonnes a year is the big­gest re­fin­ery any pub­lic sec­tor unit has set up in one stage. IOC re­cently started its 15 mil­lion tonnes unit at Paradip in Odisha.

Reliance In­dus­tries holds the dis­tinc­tion of build­ing the big­gest re­fin­ery in In­dia till now. It built its first re­fin­ery at Jam­na­gar in Gu­jarat with a ca­pac­ity of 27 mil­lion tonnes (mt) , which was sub­se­quently ex­panded to 33 mil­lion tonnes.

It has built an­other unit ad­ja­cent to it for ex­ports, with a ca­pac­ity of 29 mil­lion tonnes.

The re­fin­ery be­ing planned by the state-owned firms will be big­ger than that.

The Phase-1 it­self will be big­ger than any one sin­gle unit. It will also be ac­com­pa­nied by a petro­chem­i­cal com­plex.

GLOBAL MAR­KETS

Be­ing on the west coast will pro­vide the unit a nat­u­ral ad­van­tage of eas­ily sourc­ing crude oil from the Mid­dle-east, Africa and South Amer­ica, Singh said.

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