Financial Daily from THE HINDU group of publications
Thursday, Oct 16, 2003

News
Features
Stocks
Port Info
Archives

Group Sites

Corporate - Modernisation
Industry & Economy - Petroleum


Kochi Refineries on modernisation path

G.K. Nair

Kochi , Oct. 15

THE detailed feasibility report (DFR) for the second phase of modernisation of Kochi Refineries Ltd (KRL), upgradation of auto fuels to Euro III quality and capacity expansion to 10 million tonnes per annum (MTPA) involving a total investment of Rs 2,000 crore have been completed and the company would now go for technology selection.

Engineers India Ltd (EIL), which was entrusted with the job has done the study and submitted the DFR late last month, Mr M.A. Mohammedali, Director (Refineries), told Business Line. Meanwhile, the first stage of quality up-gradation to Euro II at a cost of Rs 273 crore would be completed by the end of next year, he said.

He said that KRL had prepared a road map to modernise the refinery to meet fuel quality requirements by 2005 and 2010 as mandated by the Union Government, and to reduce the cost of production to enhance competitiveness. "We have looked into the possibility of low cost expansion of crude oil refining capacity, commensurate with market demand, by revamp of existing units," he said. Axens of France, an international consultant, had prepared an optimum process configuration of units to meet this objective in stages and established that a capacity expansion of the refinery from the existing 7.5 MTPA to 10 MTPA is economically attractive, he said.

Though the completion of the total project is targeted for 2010, KRL would take up a few upgradation proposals, like schemes to reduce fuel consumption, yield improvement of value-added products like LPG and petrol etc., early depending on the financial viability and market requirements, Mr Mohammedali said.

The DFR for the proposed new crude oil receipt facilities capable of receiving very large crude carriers of capacity up to 3.2 lakh tonnes, at Puthuvypeen with in the jurisdiction of the Cochin Port Trust (CPT) has also been completed by EIL now, he said. The estimated cost of the project is Rs 700 crore but "we are working on this to revise the cost to the minimum," he pointed out. The facilities would consist of a Single Buoy Mooring (SBM) about 18 km off the coast, a tank farm at Puthuvypeen to receive crude oil and lines connecting SBM, tank farm and refinery, he said. A public hearing, a pre-requisite for getting environmental clearance is fixed for November 13. The project is scheduled to be completed by 2006, he said.

KRL, he said, now exports furnace oil to Singapore for want of sufficient domestic market. Besides, naphtha and diesel are also exported. But, the tariff barriers are making the exports non-profitable, he added.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Kochi Refineries on modernisation path


GNFC plant mishap claims 5 lives
Jai Balaji to float Rs 10-cr IPO
BSES gets 50 offers for power purchase plan
BSES to introduce pre-paid power
Shriram group strikes it rich in Hi-Tech Arai deal
Astec Valve gets Dh1 m orders for `GasFuse' product
Kopran product bags US patent
Caterpillar to increase sourcing from India
Natco gets DSIR award
BSES net jumps to Rs 88.83 cr in Q2
Padmalaya Tele Q2 net up
Micro Labs acquires Dr Reddy's Pondy plant
Bikanervala to set up units in Canada, Dubai
Voltas sets up shop in Dubai
Chinese ceramic co to set up unit in Gujarat
Le Meridien hotels at Ahmedabad, Kovalam, Jaipur soon
Tata group cos exempted from open offer for TFL
Strides signs supply pact with Japanese co
Genome, Shasun in bioinformatics deal
FMCG majors brainstorm to ease supply-chain bottlenecks
Cost management workshop by Kerala-CII
FACT revival: Time running out?
Rival unions clash; Chittivalasa mill locked out again
RSP's new mantra to achieve 100% capacity utilisation
Everest on growth path; plans fresh investments
Alloy Steel's saleable steel output up 15 pc
New Ranbaxy CFO


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | Home |

Copyright 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line