June 04, 2019

India Refinery Projects Update - 2019

Stratas Advisors

The refining capacity of India has reached almost 4.9 million barrels a day (MMbpd). India is the world’s fourth-largest oil refiner after the US, China and Russia. Along with a growing demand for petroleum products, the Indian government had adopted favorable policies for the refining industry. Its goal is to establish a world refining hub.

 

A current grassroots expansion project will increase refining capacity by 2.6 MMbdp in the short term (five to seven years), an optimistic scenario for project completion. A land-acquisition issue for the world’s largest planned Ratnagiri refinery (1,200 Mbpd) has stalled, likely postponing the completion of the facility until 2025.

The expansion and modernization projects are with public sector undertaking (PSU) companies. The overall progress of Indian projects will slow down next quarter as new strategies and policies are formed by newly elected ministers. However, refinery projects that have been awarded EPC and technology licenses, are progressing with engineering work.

The following tables update India’s grassroots and expansion projects. The detailed progress and associated license details of the HPCL Mumbai refinery project are also tabulated.

The information in the tables include India’s grassroots refinery projects. (MBPD = thousands barrel per day.)

Units | MBPD

Company

Location

Capacity

Expected Completion

Probability

Ratnagiri Refinery and Petrochemical (ADNOC & Saudi Aramco-50%,
IOCL, BPCL, HPCL-50%)

Babulwadi, Ratnagiri

1,200

2026

Medium

Nagarjuna Oil Corp Ltd

Cuddalore

120

2027

Very low

Barmer Refinery and Petrochemical

Barmer District

180

2022

High

Source: Stratas Advisors

The information in tables below include India’s major announced refinery expansion and modernization projects.

Units | MBPD

Company

Location

Capacity

Expected Completion

Probability

Project type

Indian Oil Co. Ltd.

(Bongaigaon Refinery)

Guwahati

47 to 54

2020

High

Expansion/ modernization

Hindustan Petroleum Corp. Ltd.

Mumbai

130 to 190

2020

High

Expansion/ modernization

Hindustan Petroleum Corp. Ltd.

Visakhapatnam

166 to 300

2020

High

Expansion/ modernization

Indian Oil Co. Ltd.

Barauni

120 to 180

2021

Medium

Expansion/ modernization

Numaligarh Refinery Ltd.

Numaligarh

60 to 180

2021

Medium

Expansion/ modernization

Indian Oil Co. Ltd.

Panipat

300 to 500

2025

Medium

Expansion/ modernization

Indian Oil Co. Ltd.

Koyali

275 to 360

2022

High

Expansion/ modernization

Indian Oil Co. Ltd.

Paradip

300 to 400

2025

Medium

Expansion/ modernization

Indian Oil Co. Ltd.

Haldia

150 to 160

2025

Medium

Expansion/ modernization

Bharat Petroleum Corp. Ltd.

Ambalamugal / Kochi

190 to 310

2020

High

Expansion/ Modernization

Chennai Petroleum Corp. Ltd.

Chennai, Manali

20 to 180

2019

High

Expansion/ modernization

Source: Stratas Advisors

 

EPC companies and technology licensors are closely involved with these mentioned projects. Most of the companies have a strong base in India for engineering, technology services or commissioning. The most active EPC companies in India’s refining downstream sectors are Engineers India Ltd., Fluor, Becthel, L&T, McDermott, Technip and Punj Llyod. Active licensor companies are UOP, Haldor Topsoe, Linde, CB&I Lummus (now McDermott), Axens, Shell and ExxonMobile.

The following table gives detailed progress and associated licensors of the HPCL Mumbai refinery in chronological order of development.

Unit | Capacity (MBPD, if not mentioned)

Unit Name

Capacity

(Existing)

Capacity (New)

Start up Year

Licensor Name (Type, Year)

Status

Crude Distillation Unit (CDU/VDU)

150

190

2020

EIL

Expansion

NHT-Isomerization

6

7

2020

 

Expansion

NHT-CCR

12.5

15

2020

 

Expansion

Diesel Hydrotreating Unit (DHT)

44

 

2020

 

Revamp

Hydrogen Generation Unit (HGU)-2

14.5 KTPA

36 KTPA

2020

Technip (EPCC, 2018)

Expansion

Vis Breaker Unit (VBU)

-

10

2020

 

New

Propylene Recovery Unit (PRU)

-

100 KTPA

2020

 

New

Diesel Hydrotreating Unit (DHT)

-

44

2012

EIL (EPCC, 2010), Jacobs (PMC,2010)

New

FCCU-2

-

25

2011

EIL (EPCC, 2010)

New

FCCU-1

19

-

1999, 2005

Esso

Revamp

Hydrogen Generation Unit (HGU)-1

-

14.5 KTPA

2012

Technip (EPCC, 2010)

New

Propane Deasphalting Unit

-

755 KTPA

 

IIP-EIL

New

Food Grade Hexane

-

50 KTPA

 

IIP-EIL

New

DHDS

-

45

2012

EIL (Prefeasibility,1999),
EIL (EPCC, 2010), Jacobs (PMC,2010)

New

Crude Distillation Unit (CDU/VDU)

-

150

1999

Esso

Revamp


NHT- Naphtha Hydrotreating unit                                            EIL-Engineers India Limited

CCR- Continuous Catalytic reforming                                     EPC- Engineering, Procurement, Construction

DHDS- Diesel Hydrodesulfurization                                       EPCC- Engineering, Procurement, Construction & Commissioning

FCCU-Fluidized Catalytic Cracking Unit                                 PMC- Project Management Contract

 

Source: Stratas Advisors  

 

Following table provides information about the world’s major oil refinery licensors.

Unit Name

Technology Type

Licensor Name

Coker

Delayed Coker

Foster Wheeler, CB&I Lummus (now McDermott), Conoco Philips

Coker

Fluid Coker

ExxonMobil

Hydrocracker

Vacuum Gas Oil- feedstock

Axens, Chevron Lummus Global, UOP

Hydrocracker

Residue - feedstock

Chevron Lummus Global, UOP, Axens, KBR

Catalytic Cracker

Vacuum Gas Oil- feedstock

Haldor Topsoe, Axens, Shell, CB&I Lummus (now McDermott), UOP, KBR, ExxonMobil

Catalytic Cracker

Residue - feedstock

KBR, IFP, UOP, Chevron Lummus Global

Source: Stratas Advisors  

 

A detailed report with regional-level analysis is available to subscribers of our Global Refining and Products service. Complete data for the analysis can be found on Stratas Advisors’ Data ToolNot a subscriber? Create an account
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