IOC aims to complete Gujarat Refinery expansion by 2016-17

To expand capacity from 13.7 MTPA to 18 MTPA

Public sector oil major, Indian Oil Corporation Ltd (IOCL) will spend over Rs 8,000 crore towards brownfield expansion of its Gujarat Refinery. It is expanding capacity to 18 million tonnes per annum (MTPA) from the existing 13.7 MTPA. Officials claimed that once expansion is commissioned in 2016-17, the refinery near Vadodara will become the largest among its refineries.

"The expansion will take 3-4 years and after which it will become the refinery with largest capacity for the company," said Gautam Roy, executive director, Gujarat Refinery, IOC during an interaction on Wednesday.

Post expansion, the refinery will be able to process more of high-sulphur crude oil, which is a cheaper and easily available variety of crude oil. "The expansion will lead to improvement in distillate yield thereby enabling production of more value added products from the refinery," said Roy. The distillate yield at Koyli near Vadodara will increase to 80 per cent post the expansion.

The increase in the high sulphur crude processing capability will ensure improved gross refinery margins (GRMs) and profitability for the company.

Commissioned in the year 1965 with the refining capacity of 3 MTPA, Gujarat Refinery of IOC has upgraded its capacity gradually to 13.7 MTPA at present. The PSU refiner produces motor spirit (MS) or petrol, high speed diesel (HSD), kerosene, liquefied natural gas (LPG), aviation turbine fuel (ATF) and bitumen.

"Our location of the refinery is in the midst of the demand centre. Therefore, most of our products are supplied in domestic market. However, we do export a small quantum of naphtha and industrial fuels," said Roy.

He further informed that the Gujarat Refinery has engaged DuPont - the global leader in employee safety, for a period of three years. The PSU will spend Rs 20 crore for the IndianOil-DuPont Safety Partnership for safety improvement at the facility.

The safety initiative is aimed at sensitizing the workforce to remain vigilant about safe operations on the field and to bring about cultural changes in their behavior towards safety.

Notably, a fire had broken out near the "flare knock out drum" of the refinery's sole gasoline-making 1.8 million tonnes a year fluid catalytic cracker (FCC) unit last month. No casualties were reported as the fire was put out within minutes leaving one employee with burn injuries.

The move to rope in a global leader in employee safety is to ensure zero tolerance 'Safety Culture' through personal safety behavior, Roy maintained.