Vadinar refinery: Difference between revisions

The US $2.14 bn (Rs.99 billion) refinery at Vadinar, Gujarat is under commissioning. The capacity of the refinery is 10.5 MMTPA and is run by Essar Group. The refinery is being built with technical and project assistance from foreign consultants and equipment suppliers. It is designed to handle a diverse range of crude mixes.

The refinery is configured to produce Euro II and Euro III grades of Petrol and Diesel. With mid-stream up gradation of processes and technologies, the refinery will have the capability to process the most sour, acidic and heavy crude. The refinery has built-in environment friendly technologies for pollution management and has also planted over one million trees to ensure a green corridor around the entire refinery complex.^{[citation needed]}

The Essar Oil Ltd grass roots refinery in Gujarat, India (started in 1996) was completed and commissioned in 2006 (commissioned in third quarter). The refinery project was delayed several times due to environmental concerns and financial problems, including initial cost over runs and a shortfall in equity contributions.

According to company reports^{[citation needed]}, the refinery was 60% complete in 1998 but had the misfortune to be struck by a cyclone that caused considerable damage. The refinery currently has the capacity to produce 240,000 barrels a day (12 million tonnes per annum) and plans are underway to increase the capacity to 680,000 barrels a day (34mtpa) by the end of fiscal 2010. The refinery employs over 1,000 personnel (the construction process required between 3,000 and 4,000).

It has the capability to produce petrol and diesel suitable for use in India as well as international markets.

The refinery is located in Vadinar, a natural all-weather, deep-draft port that can accommodate very large crude carriers (VLCCs). Vadinar also receives almost 70 per cent of India’s crude imports. Post its expansion to 34mtpa, the refinery will run at a Nelson Complexity of 12.8. This means it will be able to refine all varieties of crude, producing Euro 5 grade fuels. It will also be among the largest single location refineries in the world.^{[citation needed]}

Essar Oil serves retail customers through a countrywide network of over 1,000 retail outlets.

EOL has product offtake and infrastructure sharing agreements with oil PSUs, namely Bharat Petroleum Corporation Ltd (BPCL), Hindustan Petroleum Corporation Ltd (HPCL) and Indian Oil Corporation (IOCL).