IOC, BPCL, HPCL sign agreement to set up $40 billion refinery

PTI|
Jun 14, 2017, 10.19 PM IST

Speaking on the occasion, Oil Minister Dharmendra Pradhan said though India is the world's
third largest energy consumer after US and China, its per capita energy consumption is
one-fourth of the world average.

"Domestic oil demand is likely to climb to 500 million tonnes by 2040. Against this, our
domestic refining capacity currently is 230-235 million tonnes. We need to plan capacity
addition to not just meet this demand but also of export market," he said.

He said the 60 million tonnes capacity refinery at Babulwadi, Taluka Rajapur in Ratnagiri
district is being set up keeping in mind the future fuel demand and the export potential of
the country.

The refinery will have an accompanying mega petrochemical plant, Singh said adding the
petrochemical plant would include an aromatic complex, naphtha cracker and polymer
complex.

The project will take five-six years after land acquisition and all clearances, he added.
The entire refinery will include three crude units of 20 million tonnes each.

IOC has been looking at West coast for a refinery as catering to customers in West
and South was difficult with its refineries mostly in the North.

HPCL and BPCL have also been looking at a bigger refinery because of constraints
they face at their Mumbai units.

The refinery will produce petrol, diesel, LPG, ATF and feedstock for making
petrochemical that are basic building blocks ..

New Delhi: India’s three public sector oil companies—Indian Oil Corp. Ltd (IOC),
Bharat Petroleum Corp. Ltd (BPCL) and Hindustan Petroleum Corp. Ltd (HPCL)—on
Wednesday signed an agreement to build one of the world’s largest integrated
refinery-cum-petrochemicals complexes in Ratnagiri district of Maharashtra.

The 60 million metric tonnes per annum (MMTPA) west coast refinery-cum-
petrochemicals complex will be built at an estimated cost of $40 billion, and is
expected to be commissioned by the year 2022.

“It will be a green refinery comprising 50 units designed to operate at the highest
level of efficiency, and will be self-sufficient in power and utilities requirements,
besides creating a benchmark in environment management,” said an official
statement.

The three oil refining and marketing companies signed the joint venture agreement here
this evening. The pact was signed by IOC Chairman Sanjiv Singh, HPCL Chairman and
Managing Director Mukesh Kumar Surana and BPCL Chairman and Managing Director D
Rajkumar.

Officials said the 60 million tonne capacity refinery at Babulwadi, Taluka Rajapur in
Ratnagiri district is being set up keeping in mind the future fuel demand and the export
potential of the country.

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The refinery and the accompanying mega petrochemical complex will be set up in
two phases.
Phase-1 will be 40 million tones together with an aromatic complex, naphtha
cracker and polymer complex.
Phase-1 will cost Rs 1.2-1.5 lakh crore and will come up in five-six years from the
date of land acquisition, they said.
The entire refinery will include three crude units of 20 million tonnes each -- first of
these will be part of phase-1.
The second phase will cost Rs 50,000-60,000 crore, they said.