New Delhi: Essar Oil plans to raise the capacity of its Vadinar oil refinery to 400,000 barrels per day by September 2012, the company said on Wednesday, adding 40,000 bpd to expansion plans already underway.
Essar aims to complete the ongoing expansion of its 210,000 bpd oil refinery in Gujarat to process crude oil at a rate of 360,000 bpd or 18 million tonnes a year by June 2011.
The refinery is now consistently operating at a rate of 280,000 bpd, Essar said in a statement, adding the additional 40,000 bpd expansion would cost $380 million.
Essar Oil chief executive Naresh Nayyar said the additional expansion would help the firm capture growing Indian demand for refined products at a “very competitive cost”.
India’s oil product demand is expected to rise 5.7% this fiscal year.
“Based on our internal studies, the optimisation project is expected to result in a very strong economic performance for the refinery,” he added.
For further expansion the company plans to revamp its fluid catalytic cracking unit, diesel hydro desulphurisation unit, sour water stripping unit, diesel hydrotreater, vacuum gas oil hydrotreater and delayed coker unit.