IOC to invest 24,000cr in Gujarat refinery expansion
14 June 2021
Indian Oil Corporation (IOC) has signed up an investment pact for adding petrochemical and lube plants to its previously announced plan to expand crude oil processing capacity at its Koyali refinery at Vadodara in Gujarat.
Expanding refining capacity by 4.3 million tonnes per annum to 18 million tonnes and adding plants to produce 500,000 tonnes per annum of polypropylene and 2,35,000 tonnes of lube oil base stock at the site would see a total investment of about Rs 24,000 crore.
The LuPech project will produce import substitutes like Lube Oil Base Stock (LOBS) and Polypropylene. The Acrylics/Oxo Alcohol Project at Dumad and Gujarat Refinery will manufacture value-added Butyl Acrylate, a key ingredient for paints, coatings, adhesives, textile chemicals, plasticizer industry, and other similar products.
The inclusion of the petrochemical-lube integration component comes as part of IOC’s strategy to create a building block for future production of niche chemicals with a potential to increase petrochemical and specialty products integration index on incremental crude throughput to improve margins.
IOC said MoU was also signed for infrastructure facilities at Dumad for Koyali-Ahmednagar-Solapur Pipeline and tank truck loading facility for Linear Alkyl Benzene (LAB) – a feed-stock for detergent industries.
The other infrastructure projects envisaged are a new flare system at the Gujarat refinery and a hydrogen dispensing facility for Fuel Cell Electric Vehicles (FCEV).