IndianOil weighing Gujarat refinery expansion
Mumbai   20-Oct-2010

In order to meet the increasing domestic demand, IndianOil is considering expanding its Koyali refinery in Gujarat. The company has started a feasibility study for the increased capacity and will take a decision in the next three to four months.

“We have to look at the economies of the expansion plan. If it is viable, we will go ahead. We will work out the cost of expansion in the coming months”, said BN Bankur, Director (Refineries), IOC.

The company is also looking to acquire land for the expansion of its refinery. The current capacity of Gujarat Refinery is 13.7 million tonnes per annum. After the expansion, the capacity will go up to 16-18 million tonnes.

IOC’s Paradip refinery in Orissa will be commissioned by March 2012. The company is thinking of scrapping its plans to export the refinery product from its Paradip refinery to meet the increasing domestic demand. “We were hoping to export the product from the refinery, but (the) dynamics have changed and being a state-run firm, our priority is to meet local demand.” Bankur said.

The Paradip refinery is expected to annually produce 536,000 tonnes of liquefied petroleum gas, 124,000 tonnes of naphtha, 3.41 million tonnes of gasoline, 1.45 million tonnes of kerosene/jet kero and about 6 million tonnes of diesel.

As per the initial plans, the company was to export around 2 million tonnes of gasoline and 124,000 tonnes of naphtha annually from the refinery.

The cost of setting up Paradip Refinery is Rs 30,000 crore.