HPCL plans to revive mega refinery project in Vizag

To meet India’s growing fuel demand which is expected to reach 50 million tons by 2020, state-owned Hindustan Petroleum Corporation Ltd. (HPCL) will revive its 50,000 crore (US$8.37 billion) stalled refinery/petrochemicals project near Visakhapatnam in Andhra Pradesh.
The 15 million ton a year refinery and a mega petrochemical plant are planned for an area about 70 km away from the company’s existing Vizag refinery, HPCL Chairman and Managing Director S. Roy Choudhury told reporters on May 29. The company is looking for 3,000 acres of land in Andhra Pradesh to set up the proposed project.
The oil marketing company has asked energy giants including France’s Total SA and U.K.’s BP Plc to join in reviving the stalled petrochemical project, Choudhury said.
“Gas firm GAIL India has expressed interest in the petrochemical plant, while for the refinery we have written to 13-14 global majors for participation,” he said.
Earlier in 2009, a consortium led by HPCL, which also included steel billionaire LN Mittal’s Group, Total, state-owned Oil India Ltd. and GAIL, had put the project on hold in 2009 as petrochemical demand then was seen as too weak to justify the investment.
HPCL has also approached Oil India, Indian Oil Corp. (IOC) and ONGC to join the venture as partners.
“We estimate that our petroleum product [demand] would be 50 million tons in 2020 while our refining capacity would be around 42 million tons,” he said.
HPCL already owns a 6.5 million ton refinery in Mumbai and an 8.3 million ton unit at Vizag. While the Vizag plant is being expanded to 15 million tons, HPCL is also setting up a 9 million ton refinery at Barmer in Rajasthan at an estimated cost of 37, 320 crore (US$6.25 billion).
(May 30, 2013)