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Indian Oil selects McDermott for construction of new units at Barauni, Haldia refineries

June 15/2021

MOSCOW (MRC) -- Indian Oil Corp. Ltd. (IOC) has let contracts to McDermott International Ltd. to provide engineering, procurement, construction, and commissioning (EPCC) services for separate projects involving the addition of new units at two of its refineries in India, according to Oil&Gas Journal.

As part of the first contract, McDermott will deliver EPCC for implementation of a new diesel hydrotreating unit and associated installations to be added as part of IOCís project to increase crude oil processing capacity at its 6-million tonne/year (tpy) Barauni refinery in Begusarai District, Bihar, McDermott said on June 14.

Under the second contract, McDermott will execute EPCC for a catalytic dewaxing unit to improve quality and production capacity of lubricant base oils at the operatorís 8-million tpy refinery in Haldia, Purba Medinipur, West Bengal, India.

Alongside EPCC services, McDermottís scope of work under the projects - both of which are scheduled to begin by the end of June - also includes project management, residual process design, detailed engineering, fabrication, transportation, and mechanical completion.

The service provider did not reveal a value of the EPCC contracts.

Officially approved in 2020, the 148.10-billion rupee Barauni refinery expansion will increase crude processing capacity by 3 million tpy to 9 million tpy as well as add downstream polymer units at the site as part of IOCís strategy to help meet growing domestic demand for petroleum products in India (OGJ Online, Aug. 3, 2020).

According to the latest project documents available from IOC, Indiaís Ministry of Environment, Forest, and Climate Change (EFCC), and Envirotech East Pvt. Ltd. - which completed the projectís environmental impact assessment study in November 2018 - the Barauni capacity expansion will include construction of the new 9-million tpy atmospheric-vacuum distillation unit (AVU) to replace the refineryís three existing AVUs, which will be idled (OGJ Online, Apr. 8, 2020).

Alongside addition of the new 1.2-million tpy diesel hydrotreating unit, the project also entails installation of major grassroots units.

The expansion project also will involve revamps and upgrades to increase capacity of current units at the refinery.

Part of Indiaís commitment to produce cleaner fuels, the Haldia catalytic dewaxing unit- which, once in service, will be the refineryís second  comes as part of IOCís capacity augmentation of its Bharat Stage VI (BS-VI, equivalent to Euro 6) plant to produce low-sulfur fuels and help reduce Indiaís current reliance on imports of lube base oils.

First proposed in 2016, the catalytic dewaxing unit at Haldia will be equipped to produce 100% premium API Group III base oils by processing unconverted oil from an upstream hydrocracking unit at the refinery. The unit also will have the capability to produce API Group II base oils, as well as white oil and transformer oil as specialty products, according to a series of IOC official project documents filed with Indian regulators.

In a 2019 description of the proposed project, IOC said the Haldia refinery currently operates a 200,000-tpy catalytic Isodewaxing unit for production of API Group II base oils. The now 10.19-billion rupee (formerly 9.67-billion rupee) second catalytic Isodewaxing unit is scheduled for startup by January 2023, IOC said in May 2021.

As MRC reported before, Technip Energies has been recently awarded a significant Engineering, Procurement, Construction and Commissioning (EPCC) contract by Indian Oil Corporation Limited (IOCL) for its BR9 Expansion Project in Barauni, Bihar, in the Eastern part of India. This EPCC contract covers the installation of a new Once-through Hydrocracker Unit (OHCU) of 1 million metric tonnes per annum (MMTPA) capacity, a Fuel Gas Treatment Unit (FGTU) and the associated facilities.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.

Indian Oil Corporation Limited, or IndianOil, is an Indian state-owned oil and gas corporation with its headquarters in New Delhi, India.
Author:Margaret Volkova
Tags:PP, PE, crude and gaz condensate, PP block copolymer, homopolymer PP, PP random copolymer, propylene, ethylene, gas processing, Indian Oil Corp, India.
Category:General News
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