ONGC's Tatipaka refinery in East Godavari district has begun producing Mineral Turpentine Oil (MTO) even though this was not planned while conceptualising the mini unit.
MTO, which is also known as spirit, white spirit and Turpentine is being produced as per the standard parameters of Bureau of Indian Standards (BIS).
The production process involves manoeuvre of the operational methods of the refinery and maintaining appropriate temperatures while refining.
It also needs no additives, additional processing equipments, manpower, investment and structural changes in design of the refinery, A A Khan Executive Director and Manager, Rajahmundry Asset told reporters at Tatipaka yesterday.
It is expected to produce 10,000 tonnes per annum and likely to fetch Rs 16 crore.
A MoU has been signed with the HPCL for sale of MTO, he said.
As per the MoU, HPCL will be buying MTO as well as Naptha from ONGC and ONGC will be buying Lube oil from the HPCL, he said.
This deal assumes significance in the light of declining profits of the refinery owing to drastic fall in the upliftment of the Naptha as the users have shifted to natural gas after the availability of gas in the local market with a private oil and gas exploration company.