The Hindu Business Line : Essar set to commission Gujarat refinery by Sept

Looking ahead
The refinery would ultimately produce 10.5-12 million tonnes of processed products per annum.
The company plans to focus on producing middle distillates such as SKO (superior kerosene oil) and high-speed diesel.
To increase the number of its retail outlets to 1,500 by June 2006.

New Delhi , March 23

Essar Oil Ltd expects to commission its long-delayed 10.5-million-tonne refinery in Gujarat by the third quarter of 2006.

A senior official of Essar said, "We hope to commission our refinery by August-September and commence with 60-70 per cent capacity utilisation."

Initially the refinery will have a capacity of seven million tonnes and by January 2007, full production of 10.5 million tonnes will commence, he said. The refinery capacity will be further raised to 12 million tonnes by 2007 end and even higher to 14 million tonnes by 2008 end, the official told mediapersons on the sidelines of the Indian Oil and Gas Conference here on Thursday.

He also said that the refinery would ultimately produce between 10.5 and 12 million tonnes of processed products per annum. Of this, diesel would be 5.5 million tonnes and gasoline 2.2 million. The company plans to focus on producing middle distillates such as SKO (superior kerosene oil) and high-speed diesel. It will also produce liquefied petroleum gas (LPG) and lead-free motor gasoline of various octane levels for the domestic markets and high-octane lead-free gasoline for export. According to the company, the refinery that is located at the west coast enjoys a location advantage as it is close to both suppliers and customers. It is the nearest point from West Asia, which is a major source of crude supply. The site is linked to the Kandla-Bhatinda product pipeline through the Vadinar-Kandla pipeline, giving it easy access to the key markets of North India. The company, which already has 700 retail outlets, plans to increase the number of its retail outlets to 1,500 by June 2006. By the end of the year it plans to have 2000-2,500 retail outlets. The company plans to commission the crude distillation unit at its Vadinar refinery for getting the transport fuels to its marketing outlets.