P. 4 ~ Continued - Global capacity growth reverses; Asian, Mideast refineries progress

Dec. 5, 2011

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Vietnam currently has one major refinery, the 130,500-b/d Dung Quat complex (OGJ Online, Aug. 13, 2010). Only a few weeks ago, media sources for Vietnam reported that construction of the $7.5 billion, 200,800-b/d Nghi Son oil refinery—which would be Vietnam's second—was to be delayed until first-quarter 2012. The plant will process sour Kuwaiti crude oil, according to French oil services group Technip SA (OGJ, July 25, 2011, p. 22).

Nghi Son is to be owned by Petrovietnam, Kuwait Petroleum International, Japan's Idemitsu Kosan Co., and Mitsui Chemicals Inc. Construction will take 3-4 years. Reports said Technip, Japan's JGC Corp., and Spain's Tecnicas Reunidas are building the refinery in northern Thanh Hoa province, 134 miles south of Hanoi.

In India late in 2010, Hindustan Petroleum Corp., India's third-largest state refiner, announced plans to build a $6.6 billion refinery near Mumbai to raise the company's overall refining capacity to about 40 million tpy over 10 years, according to local media.

The new refinery, planned for western India about 186 miles south of Mumbai, would initially be able to process 9 million tpy of crude, which may be expanded to 18 million tpy.

In April, Hindustan Petroleum placed into service a 28,000-b/d fluid catalytic cracking unit at its 132,000-b/d Mumbai refinery alongside a 20,000-b/d FCCU already in place (OGJ Online, Apr. 1, 2010).

In first-quarter 2011, India's largest refiner Indian Oil Corp. dedicated a large naphtha cracker at its 300,000-b/d Panipat refinery and petrochemical complex in Haryana north of New Delhi. The cracker receives feedstock from Panipat and Indian Oil's 300,000-b/d refinery in Koyali, Gujarat, and 175,000-b/d refinery in Mathura, near Panipat.

Essar Oil Ltd, according to media reports earlier this year, would next year complete Phase 1 of an ongoing expansion at its Vadinar oil refinery.

The refinery, according to Essar statements, was operating at more than its 10.5 million tpy nameplate capacity, reaching throughput of 14.76 million tonnes in 2010-11. The Phase 1 expansion will raise its refining capacity to 18 million tpy.

Completion of Phase 1 will also enhance complexity at the refinery to 11.8 from 6.1. This will allow the plant to increase its proportion of heavy and ultra-heavy crude, produce a higher portion of middle and light distillates, and improve gross refining margin.

A joint venture of Hindustan Petroleum and Mittal Energy Investment Pte. Ltd., Singapore, completed earlier this year a 180,000-b/d grassroots refinery at Bhatinda, in the northern Indian state of Punjab.

Construction was nearing completion on a 630-mile, 28-30-in. pipeline to carry crude to the refinery from Mundra on the coast of the state of Gujarat. The project includes a crude oil terminal and single-point mooring with a 10.5-mile, 48-in. pipeline in the Gulf of Kutch at Mundra.

Each major partner holds a 49% interest in refinery operator Hindustan Mittal Energy Ltd., based in Noida, near New Delhi. Indian financial institutions hold the other 2%.

Indian Oil announced in September it was considering spending $1.87 billion to expand capacity to 18 million tpy at the Koyali refinery in Gujarat. Construction would take 36-40 months. The refinery near Ahmedabad is the second largest of 10 Indian Oil owns with total refining capacity of 64.7 million tpy.

Indian Oil's refining capacity will near 80 million tpy when its 15-million-tpy Paradip unit in Orissa comes on stream in early 2013. According to the company, the Paradip refinery will produce for domestic consumption 5.97 million tpy of diesel, 3.4 million tpy of motor gasoline, 1.45 million tpy of kerosine, 536,000 tpy of LPG, 124,000 tpy of naphtha, and 335,000 tpy of sulfur.

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