06-05-2014

Bharat Petroleum to install a new crude and vacuum distillation unit at its Mumbai refinery

Bharat Petroleum Corp Ltd, India's second-biggest state refiner, plans to invest Rs 1,419 crore in replacing an old crude processing unit at its 12 million tons a year Mumbai refinery by May 2015.

BPCL plans to install a new crude and vacuum distillation unit of 6 million tons per annum capacity as a replacement of old crude and vacuum units, a company official said.

Old units will be disposed off post stabilisation of the new plant.

With the entire 12 million tons Mumbai refinery will have new crude distillation units - the primary unit that converts crude oil into fuel, as other half was built only a few years back.

"The new unit would enhance safety and environment with improved mechanical integrity as existing old units have a number of critical equipment and civil structures having lower residual life with a potential safety and environment hazard," the official said.

Full commissioning of the project is expected by May 2015.

BPCL is also looking at expanding its Kochi refinery by installing a new crude distillation unit (CDU) of 10.5 million tons so as to replace the existing old 4.5 million tons CDU-1 which is not energy efficient.

This would raise Kochi refinery capacity to 15.5 million tons from current 9.5 million tons.
Mechanical completion of the project is planned by March 2016 and commissioning by May 2016, he said.

The company is also planning to almost double the combined capacity of its Numaligarh refinery in Assam and Bina refinery in Madhya Pradesh at a cost of about Rs 13,500 crore.

Numaligarh refinery capacity is being planned to be raised to 9 million tons from current 3 million while Bina capacity would go up to 8 million tons from 6 million.

"The Numaligarh refinery expansion is on drawing-board stage and its viability hinges on tax concessions and other benefits from the state and central government," the official said.

BPCL plans to complete the Bina expansion by 2016 end through debottlenecking, tweaking some existing configuration and technological improvements.

India currently has a refining capacity of 217 million tonnes.