IOCL, BPCL and HPCL ink JV pact for $40 bn West Coast Refinery project

The 60-MMTPA refinery-cum-petrochemicals complex is expected to be commissioned by 2022

Dharmendra Pradhan addressing the gathering

Last Updated : Jun 16 2017 | 4:22 PM IST

India's emergence as a global refining hub received a big boost with the three downstream PSU oil majors, Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (BPCL), joining hands to build one of the world's largest integrated refinery-cum-petrochemicals complexes in Ratnagiri district of Maharashtra.

The joint venture agreement for the West Coast Refinery Project was the three PSUs in the presence of Dharmendra Pradhan, Minister of State, Petroleum & Natural Gas on Wednesday.

The 60 million metric tonnes per annum (MMTPA) west coast refinery-cum-petrochemicals complex will be a state-of-the-art unit built at an estimated cost of $ 40 billion, and is expected to be commissioned by the year 2022. It will be a green refinery comprising 50 units designed to operate at the highest level of efficiency, and will be self-sufficient in power and utilities requirements, besides creating a benchmark in environment management.

As per the MoU already signed by the three PSUs, IOCL will have 50 percent stake in the refinery complex, while HPCL and BPCL will hold 25 percent each.

Designed to produce Euro-VI and above grade transportation fuels, the refinery will have in-built flexibility for processing a wide spectrum of light and heavy crude oil grades, utilising various blending techniques. It will also be able to produce on-demand product mix of petrol and diesel streams, as well as other refined products and petrochemical streams with the highest level of integration and energy efficiency.

The preliminary configuration study of the project is being carried out by Engineers India Ltd in association with an international consultant. IHS has been entrusted with the market study for the chemicals and petrochemicals to be produced at the complex.

Apart from the main refinery-cum-petrochemicals complex, the viability of other associated industries in the vicinity of the project is also being examined so that all stakeholders can be involved in the mega project.