The Hindu Business Line : MRPL to raise capacity to 15 million tonne

MANGALORE Refinery and Petrochemicals Ltd (MRPL), which recorded a highest throughput of 11.848 million tonnes in 2004-05, will increase the refining capacity to 15 million tonnes per annum (mtpa).

The company is also considering capital investments of Rs 65,000 crore. Addressing newspersons in Mangalore on Thursday, Mr Subir Raha, Chairman of ONGC-MRPL, said that MRPL has retained Engineers India Ltd for undertaking a detailed feasibility study on the upgradation of refinery facilities, including the enhancement of refining capacity up to 15 mtpa. Preliminary work on building up an integrated capacity of 15 mtpa as an addition to the existing refinery has begun.

Uncertainties: "There are serious uncertainties in the refining business today because of pricing and tariff structure. At the same time, we have pace for capacity expansion," Mr Raha said. "Capacity expansion is a profitable investment," he added. The products of the refinery will meet Euro-III and Euro-IV standards.

The company recorded the highest ever capacity utilisation of 122 per cent in 2004-05. Mr Raha termed it as the best among all the refineries in the country. The company is also planning an olefin complex at Mangalore, he said.

Capital investments

Mr Raha said that capital investments are being made in several projects for product quality improvement, value addition and de-bottlenecking. The upgradation of facilities for producing petrol up to Euro-III and Euro-IV levels are awarded on a turnkey basis to Larsen and Toubro Ltd. These are progressing satisfactorily as per schedule. He said that ONGC-MRPL has received approval from the Ministry of Petroleum and Natural Gas to develop an export-oriented refinery in Kakinada Special Economic Zone (SEZ).

The Ministry has also nominated ONGC-MRPL as the buyer for crude to be produced by the Cairn-ONGC consortium in Rajasthan. Thus, ONGC-MRPL has proposed to develop a well-head refinery in consortium with Cairn, connecting it to MRPL and international markets through a pipeline route up to Mundra port.

The Ministry has advised the company to explore involvement in Southern Petrochemicals Industries Corporation Ltd in Chennai.

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