Published On: Tue, Jan 19th, 2016

Oil PSUs to invest Rs 28,750 crore for BS-VI Auto Fuels

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sanjibBhubaneswar: In a major step towards mitigating environmental concern, Government of India (GoI) has decided that the country will be switching over to BS-VI norms of auto emissions and commensurate quality auto fuels (MS and HSD), directly from BS-IV norms w.e.f 1st April 2020. India’s leading oil major IndianOil is making all-out efforts to meet the deadline; this was shared by Shri Sanjiv Singh, Director (Refineries), IndianOil, today.

Keeping in view the environmental impact, rising pollution levels and consequent health hazards due to vehicular pollution, GoI has decided to advance the date of implementation of EURO-VI standards. This was told at the high-level meeting attended by Shri Nitin Gadkari, Hon’ble Minister for Road Transport & Highways, Shri Anant Geete, Hon’ble Minister for Heavy Industries & Public Enterprises, Shri Dharmendra Pradhan, Minister of State (I/C), Petroleum & Natural Gas, and Shri Prakash Javadekar, Hon’ble MoS (I/C), Environment, Forests & Climate Change. Oil PSUs are expected to invest about Rs. 28,750 crore for switching over to BS-VI auto fuels. Led by IndianOil, the Indian petroleum industry is gearing up for full compliance on this direction, he added.

BS-IV and BS-VI auto fuels are far lower in Sulphur content compared to BS-III levels. In Diesel (HSD), ‘‘S’ spec gets reduced from 350 ppm in BS-III to 50 ppm in BS-IV, and finally to only 10 ppm in BS-VI. Similarly in Gasoline (MS), ‘S’ spec. gets reduced from 150 ppm in BS-III to 50 ppm in BS-IV and finally to only 10 ppm in BS VI.

Such levels of drastic Sulphur reduction in BS-VI auto fuels would call for revamps or additional facilities in almost all the refineries. Modifications are likely to include Hydro-processing unit capacity de-bottlenecking and/or addition of new units, Sulphur Recovery blocks, catalyst replacement in Hydro-treating Units, associated modifications in off sites and utilities, etc.

Presently, the refineries in consultation with respective consultants are firming up the project proposals required for BS-VI quality compliance. Time required for implementing these projects would be about 3.5 to 4 years, depending on the nature & scope of the particular project. IndianOil Refineries are confident to meet the deadline of April 2020 set by the GoI for supplying BS-VI quality fuel in the market.

Paradip Refinery

The state-of-the-art 15 MMPTA capacity Paradip Refinery will be dedicated to the Nation by Shri Narendra Modi, Hon’ble Prime Minister on 7th Feb, 2016, was shared by Shri Singh.

IndianOil’s 11th Refinery at Paradip will help to meet the burgeoning energy demands of the country. For better profitability, the refinery is designed to process 100% high-sulphur, including 40% heavy crude oil of low-cost and will produce various petroleum products like petrol, diesel, kerosene, Aviation Turbine Fuel, propylene, sulphur and petroleum coke.

The refinery will accelerate the economic and infrastructural development in and around the area. It will act as a gateway for opportunities in Eastern India. Paradip Refinery has changed the skyline of the place, with tall columns, tanks and pipelines spread across. These are symbols of progress and prosperity for the region and the people of Paradip, Odisha and even beyond. It is among the most advanced refineries in the world and will serve as a catalyst for energising the industrial and economic development of the entire region and the State in the long run, said Shri Singh.

Presently, Paradip Refinery will produce Motor Spirit and High Speed Diesel of BS-IV quality and will switch over to BS-VI quality to comply with the timelines set by Government of India.

Paradip Refinery has a unique INDMAX Unit technology, which is indigenously been developed by IndianOil (R&D) scientists and engineers. The INDMAX Unit is designed to produce 44% LPG, highest from such plants.

The commissioning of INDMAX Unit at Paradip (4.17 Million Metric Tonnes Per Annum), marks a major milestone in the history of Indian refining. With this technolgoy, IndianOil is now recognized globally as a technology supplier. Implementation of INDMAX technology is IndianOil’s true tribute to the ‘Make in India’ initiative of Hon’ble Prime Minister, Shri Narendra Modi.

The other first-time technological features like Flue Gas Desulphurisation facilities, Vapour Recovery system from jetty loading, etc., are the hallmark of Paradip Refinery that will ensure environment-friendly operation of the refinery with minimum impact to the eco-system. The first consignment of products, comprising High Speed Diesel, Superior Kerosene and LPG from IndianOil’s Paradip Refinery was first flagged off in November, 2015.

With the vision to earn further value-addition to Paradip Refinery, a 700 KTA capacity Polypropylene Plant based on propylene recovered from Cracked LPG generated from INDMAX Plant is under implementation at an approved cost of Rs. 3150 crore and is scheduled for completion by 2017-18, he added.

The refinery also has plans to set an Ethylene Recovery Unit /Mono-Ethylene Glycol (MEG) at an estimated cost of Rs. 3800 crore. These units are expected to be completed by 2020-21.

IndianOil is also evaluating the options of setting-up manufacturing facilities for Para-Xylene, PTA and synthetic ethanol at Paradip. Subject to techno-commercial viability, these facilities may be installed in the next five to seven years time. Director (Refineries), IndianOil, shared these highlights during the conference.

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