Aim is to enhance refinery capacity to 15 mt

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High value products

The project

envisages production of high value products such as propylene, Euro-III/Euro IV compliant gasolene and diesel.

New Delhi, March 4

The ONGC board has approved a capital expenditure of Rs 8,000 crore for the upgradation of Mangalore Refinery & Petrochemicals Ltd (MRPL).

The board, which met on Friday, cleared the integrated refinery upgradation project for its subsidiary MRPL. The capacity of refinery will be enhanced from the present 9.69 million metric tonnes per annum (mmtpa) to 15 mmtpa, a company statement said.

The project is expected to be completed in three-and-a half years making MRPL one of the largest PSU refinery investments at a single location in the country, the statement said.

The project, on commissioning, will significantly enhance value addition in the refinery product slate. The distillate yield will improve significantly, minimising the bottoms where the realisation is lower. The project envisages production of high value products such as propylene, Euro-III/Euro IV compliant gasolene and diesel, which are in good demand in international markets, it said.

The estimated production of propylene from the upgraded refinery complex will be 3-lakh tonnes per annum (tpa). With the implementation of this project, the new refinery configuration would allow processing of higher proportion of low cost sour and heavy crude leading to better margin, the company said. In order to enter the high-priced lubes market, a 2.5-lakh tpa of Lube Oil Base Stock (LOBS) production facility will be built as part of the upgradation project. This will produce high-end Group II (plus) and Group III LOBS.

Mr Subir Raha, Chairman of MRPL, said this is the first of a series of major projects planned at Mangalore, and the integrated upgradation project will further improve the company's cost-efficiency.

(This article was published in the Business Line print edition dated March 5, 2006)
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