'Naphtha cracker complex to emerge as Petrochem hub'
New Delhi   18-Sep-2008
<b>Beyond core businesses, IndianOil is working to emerge as a major player in the petrochemicals business by the year 2011-12 with two petrochemical hubs shaping up at Panipat and Paradip, says Sarita Choudhury</b> An energy self-sufficient India can alter the economic, political and manufacturing landscape of the region. Countries leading petro-giant IndianOil have drawn up a major expansion plan for its Panipat refinery to increase its capacity from 12 million tonnes to 15 million tones per annum by November 2009 at an estimated cost of around Rs 14,000 crore. IndianOil Director (Refineries) BN Bankapur said Naphtha Cracker and downstream polymer units were being installed at Panipat, making this complex an integrated Refinery-cum-Petrochemicals Complex. Bankapur also shared that the Naphtha Cracker Project at Panipat has achieved 78 per cent overall progress against the schedule of 77.2 per cent in about two year's time and termed it as a good achievement IndianOil is also expanding the Refining Capacity of its Panipat from 12 MMTPA to 15 MMTPA. The Panipat Refinery Additional Expansion Project (P-15) is in progress and is targeted to be completed by December 2009. This will ensure better supply of petroleum products to the strategic north-west region of the country. Panipat Refinery is the most technically advanced Public Sector refinery of lndia today, which meets the demand of petroleum products not only in Haryana but also in the entire North-West Region including Punjab, J&K, Himachal, Chandigarh, Uttarakhand states and part of Rajasthan & Delhi. The original refinery at Panipat with 6 MMTPA capacity was built and commissioned in 1998 at a cost of Rs. 3868 crore. The Refinery doubled its refining capacity from 6 MMTPA to 12 MMTPA in 2006 with the commissioning of its Expansion Project. Talking about the other major ongoing projects at IndianOil, Bankapur said that in order to ensure meeting product quality requirement of MS/HSD to EURO-III/IV levels, and to process increased quantity of high sulphur crude and improvement in distillate yield, IndianOil is implementing a Resid upgradation project at Gujarat Refinery at a cost of 5,882 crore which is scheduled for completion in January 2010. Improvement in diesel quality and capacity expansion at Haldia refinery at a cost of Rs. 2,869 crore is under implementation. The project comprises installation of facilities for improvement in Diesel quality and Distillate yield (Hydrocracker) at Haldia and the capacity expansion of the Refinery from 6 MMTPA to 7.5 MMTPA. This involves once through Hydrocracking Unit (OHCU), Hydrogen Unit, Sulphur Recovery Units, revamp of Crude Distillation Units and related utilities and offsite facilities. Also, IndianOil is looking at setting up of Paraxylene Plant at Gujarat and Haldia Refineries, said Mr. Bankapur. As part of IndianOil's initiatives for growth, diversification and quality improvement, the Corporation is implementing projects of over Rs. 50,000 crore currently. Bankapur also disclosed that in view of the stressed financial conditions, the Paradip Refinery Project has been re-configured and re-assessed by IndianOil in order to reduce the cost of the project. After detailed analysis, it has now been proposed to consider only the fuel refinery of 15 MMTPA in the first phase of the project at an estimated cost of Rs. 29,777 crore. The Petrochemical Complex will be considered in the second phase. Pending financial closure, IndianOil Board has also sanctioned Rs. 3,480 Crore for going ahead with the necessary activities required to meet the project schedule such as appointment of Project Management Consultants for Engineering, Procurement & Construction (EPC) phase of the project and procurement of Long Lead Items, etc. Meanwhile Land Acquisition, Initial Infrastructure Development, Residential Accommodation for Construction Personnel, Basic Design Engineering Packages of Licensed as well as open art units & off sites/ Utilities and Front End Engineering Design of the project has been completed. Balance Infrastructure development work such as Construction Power, Construction Water, etc. are under various stages of completion.