News post authorEliza Bhalerao 01 July 2020


IndianOil continues to lay emphasis on infrastructure development and has been consistently investing in several projects across the country. The dedicated project teams of IndianOil ensure that implementation of the projects from the idea stage to commissioning is done seamlessly. Right from conceptualisation to commissioning, all pipeline projects are being implemented in-house. The projects are financed through an optimum mix of internal accruals and borrowings from domestic as well as international markets.

The IndianOil Board approved some significant refinery projects; these include revamp of old units and installation of new units for production of superior BS-VI fuels in various refineries at an expenditure of Rs. 15,400 crore; expansion of Barauni Refinery from 6 to 9 MMTPA; and capacity expansion of the PX/PTA (Paraxylene/Purified Terephthalic Acid) unit at Panipat Refinery.The total planned capex for major projects in 2018-19 – Rs. 19,800 plus an additional Rs. 3000 crore for small projects.

The details of major projects are as under:

Project Cost: Rs. 3150 crore
Expected Commissioning: Commissioned in February 2019
Benefit: The project will help in consolidating the polymer business of the corporation by way of producing value-added polypropylene using propylene generated from INDMAX unit of Paradip Refinery. This facility will also facilitate the vision of Government of Odisha in establishing the Petroleum, Chemicals and Petrochemical Investment Region (PCPIR) at Paradip.
Brief Description: The project aims to set up a 680 KTA Polypropylene unit based on the latest generation Spheripol Technology licensed by Basell, Italy. The Polypropylene Unit will be integrated with INDMAX unit of Paradip Refinery for using propylene as feed. The unit is equipped for producing wide range of premium quality polypropylene. The project is being executed in LSTK mode and is in advanced stage of construction.
PX/PTA plant at Paradip Refinery
Brief Description: The IndianOil Board has accorded approval for the setting up of an integrated PX/PTA (Paraxylene/Purified Terephthalic Acid) plant at Paradip Refinery. PTA is used as raw material in the manufacture of polyester staple fibre, polyester filament yarn, PET bottles, etc. Estimated to cost Rs. 9,137 crore, the 1.2 MMTPA (million metric tonnes per annum) plant will pave the way for the setting up of a Plastics Park in Odisha.

A PP (Polypropylene) unit of 680 KTA (kill tonnes per annum) is already under implementation at Paradip Refinery at a cost of Rs. 3,150 crore for commissioning by this year end. Polypropylene is used in the manufacture of plastic goods in furniture, appliances, household items, moulded luggage, industrial products, automotive components and other applications.

An Ethylene Glycol plant of 357 KTA capacity of MEG (Mono Ethylene Glycol) is also coming up at Paradip refinery at a cost of Rs. 3,752 crore. MEG is predominantly used with PTA in the manufacture of polyester staple fibre, filament yarn, etc., and also finds many applications in the chemicals industry.

Expansion of Panipat Refinery from 15 to 25 MMTPA
Brief Description: The IndianOil Board has accorded approval for capacity expansion of IndianOil’s Panipat Refinery in Haryana from 15 to 25 MMTPA (million metric tonnes per annum) along with a PP (Polypropylene) unit at an estimated investment of Rs. 23,116 crore.

Panipat Refinery is already integrated with an aromatic complex and a Naphtha Cracker complex. The aromatic complex comprises a PX/PTA (Paraxylene/Purified Terephthalic Acid) plant while the Naphtha Cracker is equipped with downstream polymer units for production of petrochemical intermediates like Polyethylene, Polypropylene, Mono Ethylene Glycol, Styrene Butadiene Rubber, etc. used in the manufacture of a wide range of products.

Project Cost: Rs. 4190 crore
Benefit: The project aims to upgrade black oil mainly high sulphur furnace oil to higher value products like Naphtha, HSD etc to improve the Gross Refinery Margin of Haldia Refinery. It would also facilitate increased processing of high sulphur crude by the refinery. This project also aims to produce 100% BS-VI quality auto fuels as a measure towards environmental protection.
Brief Description: The major facilities envisaged are Delayed Coking Unit of 1.7 MMTPA capacity along with Coker Gas Oil Treating Unit, Coker LPG Treating Unit, Sulphur Recovery Unit, Amine Regeneration Unit, Sour Water Stripper and associated Offsites & Utilities. Project is being executed in hybrid mode and is in advanced stage of construction.
Project Cost: Rs. 1584 crore
Expected Commissioning: 30 months after receipt of statutory clearances
Benefit: With the proposed de-bottlenecking/augmentation of SMPL, the refineries would be in a position to process more crude oil.
Brief Description: The proposal is for enhancing the capacity of Salaya-Viramgam section from 21 MMTPA to 25.0 MMTPA, [Viramgam-Koyali section from 8.5 MMTPA to 9.0 MMTPA, Viramgam-Chaksu section from 13.5 MMTPA to 16.5 MMTPA, Chaksu-Mathura section from 7.5 MMTPA to 9.2 MMTPA and Chaksu-Panipat section from 6 MMTPA to 7.3 MMTPA].
BS-VI Quality Improvement Projects (Panipat, Mathura, Gujarat, Haldia, Bongaigaon, Digboi and Guwahati Refinery)
Project Cost: Rs. 12,343 Crore
Benefit: Production of BS-VI grade auto fuel
Brief Description: BS-VI projects involve revamp of existing plants & installation of new plants to reduce the sulphur content in both MS & HSD to 10 ppm (max). As per the govt mandate, BS-VI grade auto fuels shall be supplied on an all-India basis by April 1, 2020.
Project Cost: Rs. 2,582 crore
Benefit: To improve distillates yield & enhance production of high-value MS & LPG, thereby reducing crude import and saving valuable foreign exchange.
Brief Description: The project, based on the state-of-the-art INDMAX technology, is developed in-house by IndianOil R&D, giving fillip to the ‘Make in India’ campaign of Govt. of India. INDMAX unit is designed to upgrade black oil to produce higher value-added products like gasoline and LPG. This project involves installation of INDMAX unit and INDMAX Gasoline Hydrodesulphurization (IGHDS) unit along with mounded bullets & LPG dispatch facilities.
Fuel Quality Up-gradation Project, Paradip Refinery
Project Cost: Rs 3,361 Crore
Benefit: Production of BS-VI grade auto fuel. This project will also improve the flexibility of processing optimised crude mix in the future
Brief Description: In Fuel Quality Up-gradation Project at Paradip Refinery, existing Diesel Hydrotreating Unit is revamped and three new units – Hydrogen Generation Unit, Refinery Off Gas Pressure Swing Absorption unit and Kero-hydro Desulphurisation unit are being installed to produce BS-VI grade auto fuel.
Fuel Quality Up-gradation Project, Barauni Refinery
Project Cost: Rs 1,774 Crore
Benefit: Production of BS-VI grade fuel
Brief Description: This project envisages fuel quality upgradation as well as capacity augmentation of three existing units – Diesel Hydrotreating Unit, Naphtha Splitting Unit & Prime-G unit and installation of three new units-Prime-G, Naptha Hydro Treater/Continuous Catalytic Reactor Unit & Naphtha Splitter Unit at Barauni Refinery to produce BS-VI grade auto fuel.
Ethylene Glycol Project, Paradip Refinery
Project Cost: Rs 5,654 Crore
Benefit: Reduction of MEG imports leading to reduction of import bill. This project will also facilitate the development of petrochemicals-based industries in the region.
Brief Description: The project envisages recovery of ethylene present in FCC off-gases and then upgrading it to Mono Ethylene Glycol, Di Ethylene Glycol and Tri Ethylene Glycol. This project will strengthen IndianOil’s position in the polyester business, as the polyester sector is a major consumer of MEG in India.
Catalyst Plant, Panipat Refinery
Project Cost: Rs. 207 Crore
Benefit: Reduction in import of catalyst leading to reduction of import bill.
Brief Description: The project envisages setting of a 1,500 MTPA capacity catalyst plant, for production of 1,000 MTPA of DHDS/DHDT catalyst and 500 MTPA of FCC catalyst additives. The catalyst produced from the plant will be for captive consumption. This project is using technology developed by IndianOil R&D, giving fillip to ‘Make in India’ campaign of Govt. of India.
Naphtha Cracker (NCU) expansion and revamp of Mono Ethylene Glycol (MEG) & Butadiene Extraction Unit (BEU) at Panipat Refinery
Project Cost: Rs. 1,636 Crore
Benefit: Reduction of MEG imports leading to reduction of import bill and also to improve IndianOil’s market share of petrochemical products in North India
Brief Description: The project includes NCU revamp (847 KTA to 947 KTA), MEG expansion (300 KTA to 425 KTA), BEU expansion (117 to 204 KTA) and Ethylene Recovery Unit. On completion of this project, the production of polymer grade ethylene and propylene will increase, and the same shall be utilised for production of polymers & MEG.
2G Ethanol Project, Panipat Refinery
Project Cost: Rs. 909 Crore
Benefit: Blending of Ethanol with MS leads to reduction of import of crude oil with corresponding savings in foreign exchange
Brief Description: This project envisages production of Ethanol (100 KL/Day) from multi-feedstock lignocelluloses using indigenous technology.
Off-gas to Ethanol (3G), Panipat Refinery
Project Cost: Rs. 598 Crore
Benefit: Blending of Ethanol with MS leads to reduction of import of crude oil with corresponding savings in foreign exchange.
Brief Description: The project envisages conversion of Hydrogen Off-gas to ethanol using gas fermentation technology.
INDJET Unit, Barauni Refinery
Project Cost: Rs. 189 Crore
Benefit: To meet the captive & future demand of Aviation Turbine Fuel in Bihar region & Nepal.
Brief Description: The project envisages setting up an ‘IndJet’ unit of 325 KTA capacity for production of Aviation Turbine Fuel (ATF) by hydro treatment process. The project is based on indigenous technology developed by IndianOil R&D.
Hydrogen blended Compressed Natural Gas (HCNG), New Delhi
Project Cost: Rs. 14.67 Crore
Benefit: H-CNG fuel will lower emissions of CNG vehicles & reduce pollution.
Brief Description: This project is for setting up a Compact Reformer Unit to produce Hydrogen-blended Compressed Natural Gas (HCNG) at Rajghat-I Bus Depot, New Delhi. The purpose is to demonstrate the use of HCNG as an alternative cleaner fuel in commercial CNG vehicles. The patented technology has been developed by IndianOil R&D. The foundation stone of the project was laid on July 4, 2019.
In addition to the above, the following ongoing projects are also in various stages of implementation:
  • Petcoke evacuation project at Paradip
  • Jharsuguda-Khunti section of Paradip-Raipur-Ranchi product pipeline
  • Paradip-Haldia-Durgapur LPG pipeline
  • Paradip-Hyderabad pipeline
  • Augmentation of Paradip-Haldia-Durgapur LPG pipeline and its extension up to Patna and Muzaffarpur
  • Jaipur-Panipat naphtha pipeline, along with augmentation of Koyali-Sanganer pipeline
  • CBR-Trichy pipeline
  • Ennore-Trichy-Madurai LPG pipeline
  • Ennore-Nagapattinam-Tuticorin-Madurai-Bengaluru natural gas pipeline
  • 18′ Haldia-Barauni pipeline
  • Branch pipeline on Barauni-Kanpur pipeline to Baitalpur and Motihari
  • Motihari-Amlekhgunj pipeline
  • Koyali-Ahmednagar-Solapur pipeline
  • Augmentation of Chennai-Trichy-Madurai pipeline
  • LPG import terminal at Paradip and Kochi
  • Augmentation of LPG terminal at Kandla
  • LPG bottling plants at Banka, Gorakhpur, Bathinda, Goindwal Sahib, Agartala, Jabalpur, Nagpur, Salem, Gwalior, Sitarganj, Trishundi, Korba and Khurda
  • LPG terminal at Paradip
  • Product storage depots at Khunti (Jharkhand), Una (H.P.), Guntakal (A.P.) and Asanur (T.N.)
  • 5-MMTPA LNG import terminal project at Ennore (through a Joint Venture Company)

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