The Hindu Business Line : BPCL-Kochi Refineries plans upgradation project

Kochi, Aug. 4 BPCL-Kochi Refineries is to take up a mega project involving an investment of over Rs 5,000 crore for upgradation of residue to value-added distillate products.

Detailed study is being carried out on the “Bottoms Upgrading Project” by a consultant and it is expected to cost around Rs 5,000 crore to Rs 8,000 crore, depending on the final configuration, Mr E. Nandakumar, Executive Director, BPCL-Kochi Refineries, told Business Line on Friday.

He said that the project would enable processing of more quantities of cheaper high sulfur crudes at Kochi Refineries and upgradation of residue to more valuable products such as diesel, naphtha and LPG, thereby improving the refining margin.

Processing of 1.5 million tonnes per annum (mtpa) of residue from Mumbai Refinery is also being considered at Kochi Refineries, Mr Nandakumar said.

The project includes setting up of a Delayed Coker unit and associated downstream facilities like hydro-cracker unit, diesel hydro-treater unit, hydrogen Generation Unit, Sulphur Recovery Unit etc.

When implemented, he said, this project would generate about 10 per cent more of distillates. In addition, the refinery is also in the process of reviving its earlier plan to set up a power generating unit using residue as fuel.

Since it can now trade power, Kochi Refineries has decided to include it in its diversification programme and it is going to be a joint venture using modern foreign technology, he said.

The refineries had long back planned to set up a 500-MW power plant using the residues as fuel. However, this was given up later as it was found to be unviable.

Besides, the Single Point Mooring (SPM) project currently under implementation to reduce the cost on transportation of crude, would be commissioned sometime by September end or early October, he said.

The commissioning of SPM has been delayed due to the Southwest Monsoon. In fact, over 90 per cent of the work has been completed.

The SPM project has become inevitable for the refineries as Kochi Refineries is expanding its capacity from the present 7.5 mtpa to 9.5 mtpa, he said.

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