Indian Oil Corp to spend Rs 9814 crore for expansion of two refineries

Indian Oil Corporation Ltd (IOCL) plans to spend Rs 9814 crore for expansion of its two refineries at Barauni (UP) and Panipat (Haryana). While IOCL will invest Rs 8287 crores to increase the capacity of Barauni refinery from 6 million metric tonne per annum (MMTPA) capacity to 9 MMTPA, it will spend Rs 1527 crores for the expansion of Panipat refinery. 

“The board of directors of Indian Oil Corporation Ltd has approved expansion of Barauni refinery from 6 MMTPA capacity to 9 MMTPA along with downstream polypropylene unit at an estimated cost of Rs 8287 crore, and implementation of olefin recovery project along with expansion of existing naphtha cracker unit, MEG (monoethylene glycol) revamp and benzene expansion unit modifications at Panipat at an estimated cost of Rs 1527 crores,” said Indian Oil Corp in a BSE filing on September 29, 2016.

Over the years, Barauni refinery, which receives crude oil by pipeline from Paradip on the east coast via Haldia, has, through various revamps and expansion projects, added the capability to process high-sulphur crude - high-sulphur crude oil (sour crude) is cheaper than low-sulphur crudes - thereby increasing not only the capacity but also the profitability of the refinery.

IOCL’s Panipat refinery complex has capacity of 15 MMTPA and also operates a world-scale naphtha cracker, with four downstream units for production of polymer (plastics) intermediates. Its integrated PX-PTA (paraxylene-purified terephthalic acid) plant is the single largest unit in India, with a capacity of 5,53,000 MTPA producing polyester intermediates. IOCL produces ethylene and propylene, which are further used to produce polymers like polypropylene, low & high-density polyethylene and monoethylene glycol (MEG).