L&T bags HPCL Rajasthan Refinery contract to set up catalytic cracking unit

PTI New Delhi | Updated on January 04, 2021

Larsen & Toubro (L&T) on Monday said it has won a large contract from HPCL Rajasthan Refinery in Barmer to set up a catalytic cracking unit.

The company, however, did not specify the exact contract value, but as per its classification, a large contract ranges between ₹2,500 and ₹5,000 crore.

L&T Hydrocarbon Engineering (LTHE) -- a wholly-owned subsidiary of Larsen & Toubro -- has won an order from HPCL Rajasthan Refinery Ltd (HRRL), a joint venture between Hindustan Petroleum Corporation (HPCL) and the Rajasthan government.

“The engineering, procurement, construction and commissioning (EPCC) contract is for setting up a Petrochemical Fluidized Catalytic Cracking (PFCC) including Propylene Recovery Unit, EPCC-03 Package (capacity: 2.9 MMTPA), for Rajasthan Refinery Project at Barmer, Rajasthan. The unit is licensed by TechnipFMC," the statement said.

The PFCC will convert the heavy hydrocarbons from the vacuum distillation unit to produce more valuable gasoline, diesel, propylene and lighter products by the process of catalytic cracking, it added.

“This is another package that LTHE has won from HRRL amid stiff global competition. It will be our endeavour to live up to the trust reposed by HRRL and HPCL in our execution capabilities and quality assurance,” Subramanian Sarma, Whole-time Director & Senior EVP (Energy), Larsen & Toubro Limited and LTHE CEO and MD said.

The LTHE is already executing three packages, namely residue up-gradation facility, crude distillation unit/vacuum distillation unit and full conversion hydrocracker unit for HPCL’s ongoing Visakh Refinery Modernisation Project at Visakhapatnam, the statement said.

Earlier today, the LTHE said it has bagged an over to ₹7,000 crore order from HPCL Rajasthan Refinery Ltd for setting up a dual-feed cracker unit.

The contract has been awarded through international competitive bidding on lump-sum turnkey (LSTK) basis. With both the petro fluidised catalytic cracking unit and dual feed cracker unit projects, the LTHE has emerged as the largest EPC contractor in the entire Rajasthan refinery project.

Published on January 04, 2021

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