Project Profile
Value: US$641.9 million
Location: Paradip, Orissa, Odisha, India
Area: 3,344 acres
Process Capacity: 15mtpa of high sulphur heavy crude oil, .97 million tonnes of diesel, 3.4 million tonnes of petrol, 1.45 million tonnes of kerosene/jet fuel, 536,000t of LPG, 124,000t of naphtha and 335,000t of sulphur
Start-up Year: 1Q 2013
The Indian Oil Corporation (IOC) is building a refinery in Paradip in the Indian state of Orissa. Spread over 3,344 acres, the state-of-the-art refinery is being constructed at a cost of US$641.9m. The refinery will process 15mtpa of high sulphur heavy crude oil under nil-residue production. The refinery was proposed in 1995 and approved by the government in 1998. The foundation stone was laid in January 2000. The project suffered several delays due to the withdrawal of tax incentives and a slump in the oil market. Final approval for the refinery was given by the IOC board in February 2009.
The project was originally expected to be completed by March 2012 and become fully operational by November 2012, but completion has been delayed until the first quarter of 2013 due to financial constraints. The new refinery will produce 5.97 million tonnes of diesel, 3.4 million tonnes of petrol, 1.45 million tonnes of kerosene/jet fuel, 536,000t of LPG, 124,000t of naphtha and 335,000t of sulphur. All the products will be sold in the domestic market. The refinery is also expected to produce 200,000t of propylene, which will be exported. It will help the IOC to move into overseas markets and will assist in processing low-quality crude oil. In 2016, it was decided that the Indian Oil Corporation will invest another US$600 million to upgrade the refinery. The upgrade is required to allow the facility to produce Euro Grade VI compliant fuels. The decision has been made following an Indian government initiative to bring forward the sale of Euro Grade VI fuels by 4 years to April 2020. In order to render the refinery capable of producing grade VI fuel, the Indian Oil Corporation will need to add an isomerisation facility as well as a diesel hydrotreater and a hydrogen unit.
Operators:
Indian Oil Corporation Ltd. (IOCL): Operator with 100% interest
Contractors:
Essar Projects: EPCM contract for the core processing units of the refinery
Foster Wheeler: FEED and EPCM contract
Jacobs Engineering: PMC contract
KazStroyService: Constructing offsites and utilities at the refinery
Larsen & Toubro (L&T): FCC reactor regenerator project
Praxair: Supply hydrogen and nitrogen gases to the refinery
Punj Lloyd Group: Piping work
Toyo Engineering: Offshore consultant for the FCC and propylene recovery unit