Lok Sabha Question No. 116 (STARRED), answered on 2016-07-25
Subject: Modernisation/Expansion of Refineries
Ministry: PETROLEUM AND NATURAL GAS
Asked by: KAMAL NATH, PONGULETI SRINIVASA REDDY

LOK SABHA STARRED QUESTION NO.*116 TO BE ANSWERED ON 25 th  July, 2016

## MODERNISATION/EXPANSION OF REFINERIES

*116.  SHRI KAMAL NATH: SHRI PONGULETI SRINIVASA REDDY: पैट्रोलियम और प्राक ृ लिक गैस मंत्री

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a) whether  the  Government  proposes  to  undertake  modernisation/upgradation  of the  oil  refineries  across  the  country  and  to  equip  them  with  latest  technology being used at international level and if so, the details thereof including the funds earmarked, targets set for expansion of refiner capacity, State/UT/Oil Marketing Company (OMC)- wise including Bharat Oman Refinery Limited (BORL) ; (b) whether the Government has set up a working group to assess the country's fuel demand and prepare an action plan to scale up the refinery capacity in the light of report of World Energy Outlook and if so, the details thereof and the action taken in this regard; (c) the  details  of  existing  refineries/petrochemical  unit  including  those  running  on installed capacity/utilisation  and  steps  taken  by  the  Government  for  their  optimum
- Naphtha functioning in the country at present along with their utilisation, OMC and refinery and State/UT-wise; and
- (d) whether the Government/OMCs propose to set up mega refineries/petrochemical plants in the country and if so, the details thereof along with places identified for the purpose, OMC/State/UT-wise?

## ANSWER

पैट्रोलियम और प्राक ृ लिक गैस मंत्रािय में राज्य मंत्री ( स्विंत्र प्रभार ) (श्री धमेन्द्र प्रधान)

MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI DHARMENDRA PRADHAN)

(a) to (d) A statement is laid on the Table of the House.

- ---------------

STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (d)  OF  LOK  SABHA STARRED  QUESTION  NO.116  BY  SHRI  KAMAL  NATH  AND  SHRI  PONGULETI SRINIVASA REDDY TO BE ANSWERED ON 25 th July, 2016 REGARDING MODERNISATION/EXPANSION OF REFINERIES

(a) Indian refineries have adopted modern technologies for production of petroleum products and  have  continuously  upgraded  the  technologies  in  line  with  their  requirements  and international trends. Apart from primary processing technologies, viz., Crude Oil Fractionation  by  Atmospheric  Distillation  and  Vacuum  Distillation  for  initial  separation,  the major modern process technologies employed by Public Sector Undertaking (PSU) refineries for producing petroleum products include:-

- i)  Secondary/Upgradation Technologies for yield improvement:
2.  Thermal cracking processes, viz., Visbreaking, Delayed Coking.
3.  Fluidised Catalytic Cracking, INDMAX Technology.
4.  Hydrocracking.
5. ii)  Quality Upgradation Technologies:
6.  Catalytic  Reforming,  Isomerisation,  Alkylation,  Prime  G  for  meeting  the  quality specifications  of  Petrol  w.r.t.  octane  number,  benzene  content,  aromatics,  olefins, sulphur, distillation etc.
7.  Diesel  Hydro-desulphurisation (DHDS), Diesel Hydro-treating (DHDT) for diesel for reduction  of  sulphur  &  PAH  (Poly  Aromatic  Hydrocarbons)  and  cetane  number improvement.

Details of projects undertaken by some of the Oil PSUs are given at Annexure-I.

- (b)  Government  has  constituted  a  Working  Group  for  preparing  Approach  Paper  for enhancing Refining Capacity by the year 2040. The terms of reference of the Working Group are as follows:-
- (i) To assess primary energy requirement for 2040.
- (ii) To assess likely technological developments in different energy fields.
- (iii)  To develop Primary Energy Mix with breakup in terms of gas, oil, coal, nuclear, solar, hydro and bio, etc.
- (iv)  To  assess  demand for major  petroleum  products  linking  with  advancements  in use, substitution by other forms of energy, drive on enhancing energy efficiency and Government policies.

The first meeting of Working Group has been held on 27.06.2016.

- (c) Details  of  existing  Refineries/petrochemical  Units  (Public  Sector)  functioning  in  the country  is  given  at Annexure-II .  PSU  Refineries  in  India  have  been  achieving  average capacity utilization of over 100% for the last three years.
- (d) Government has accorded approval on 20.09.2013 to Hindustan Petroleum Corporation Ltd.  (HPCL)  to  set  up  a  9  MMTPA  Refinery-cum-Petrochemical  Complex  in  Barmer, Rajasthan in collaboration with Government of Rajasthan (GoR). Further, Oil PSUs namely, Indian  Oil  Corporation  Limited  (IOCL),  Bharat  Petroleum  Corporation  Limited  (BPCL)  and Hindustan Petroleum Corporation Limited (HPCL) have announced a plan to jointly set up an integrated  refinery-cum-petrochemical  complex  with  a  refining  capacity  of  60  MMTPA  in phased manner in Maharashtra.

## Annexure referred to in reply to parts (a) of Lok Sabha Starred Question No.116 to be answered on 25 th July, 2016.

## List of ongoing Projects for Modernisation and Expansion of Refineries

| Name of the Project                                                                                                 | Objective                                                                                                                                                                                                              | Approved cost (Rs. in crore)          |
|---------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------|
| Indian Oil Corporation Limited                                                                                      | Indian Oil Corporation Limited                                                                                                                                                                                         | Indian Oil Corporation Limited        |
| New Bitumen Biturox Unit, Barauni Refinery, Bihar                                                                   | ●Improving profitability ●Increase in High Sulphur Crude processing from 11 to 16%                                                                                                                                     | 71                                    |
| Coke chamber replacement in Coker-A, Barauni Refinery, Bihar                                                        | ●Improving the reliability & safety of system ●Processing High Sulphur Crude                                                                                                                                           | 480                                   |
| Distillate Yield Improvement Project, Haldia Refinery, West Bengal                                                  | ●Black Oil Upgradation ●Distillate yield improvement from 68.4 to 72.2% ●Increase in High Sulphur Crude processing from 60 to 80%(apprx). ●Increase in Refinery capacity from 7.5 to 8.0 MMTPA through revamp of CDU-I | 3,076                                 |
| Indmax Unit at Bongaigaon Refinery                                                                                  |  To help improve LPG & MS production  Improve refinery profitability  Capacity enhancement from 2.35 to 2.7 MMTPA                                                                                                   | 2582                                  |
| Chennai Petroleum Corporation Limited                                                                               | Chennai Petroleum Corporation Limited                                                                                                                                                                                  | Chennai Petroleum Corporation Limited |
| Delayed Coker Unit for Resid Upgradation Project                                                                    | ●To increase distillate yield by 7% ●Processing capability of High Sulphur Crudes from 72% to 83%. ●Reduction of High Sulphur Fuel Oil production                                                                      | 3110                                  |
| Bharat Petroleum Corporation Limited                                                                                | Bharat Petroleum Corporation Limited                                                                                                                                                                                   | Bharat Petroleum Corporation Limited  |
| Integrated Refinery Expansion Project(IREP) at Kochi Refinery, Kerala                                               | ●To produce auto fuels meeting Euro IV quality norms. ●Upgrading fuels oil to value added products through bottoms upgradation.                                                                                        | 16504                                 |
| Conversion of existing Catalytic Reforming Unit (CRU) to an Isomerisation Unit at BPCL Mumbai Refinery, Maharashtra | ●100% Euro IV MS                                                                                                                                                                                                       | 725                                   |
| Diesel Hydrotreater(DHT) at BPCL Mumbai Refinery                                                                    |  Production of 100% Euro-IV diesel                                                                                                                                                                                    | 2443                                  |
| Installation of Gasoline Treatment Unit (GTU)                                                                       |  For production of BS-V MS                                                                                                                                                                                            | 554                                   |
| Expansion of Bharat Oman Refineries Ltd. (BORL)                                                                     |  Enhance refinery crude processing capacity from 6.0 to 7.8 MMTPA to cater to the growing fuel demands of the central & northern region.                                                                              | 3075                                  |
| Numaligarh Refinery Limited                                                                                         | Numaligarh Refinery Limited                                                                                                                                                                                            | Numaligarh Refinery Limited           |
| Diesel Hydrotreater (DHT)                                                                                           |  Installation of Diesel Hydrotreater                                                                                                                                                                                  | 1031.37                               |

|                                               | (DHT) including a stand-by SRU with integrated TGTU.                                             |                                               |
|-----------------------------------------------|--------------------------------------------------------------------------------------------------|-----------------------------------------------|
| Mounded Bullet                                |  Installation of Mounded Bullet for storage of LPG                                              | 122.10                                        |
| Mangalore Refinery and Petrochemicals Limited | Mangalore Refinery and Petrochemicals Limited                                                    | Mangalore Refinery and Petrochemicals Limited |
| Revamp of CCR                                 | Increase in feed processing capacity of NHT/Platformer/CCR and Reformate Splitter Unit Capacity. | 195                                           |

## Annexure referred to in reply to parts (c) of Lok Sabha Starred Question No.116 to be answered on 25 th July, 2016.

## A.  Details of existing Refineries along with installed capacity in the Country:

| Sr. No.                   | Refinery Location             | Name of the Company                           | Name Plate Capacity (MMTPA)*   |
|---------------------------|-------------------------------|-----------------------------------------------|--------------------------------|
| PSU Refineries            | PSU Refineries                | PSU Refineries                                | PSU Refineries                 |
| 1                         | Digboi, Assam                 |                                               | 0.650                          |
| 2                         | Guwahati, Assam               |                                               | 1.000                          |
| 3                         | Barauni, Bihar                |                                               | 6.000                          |
| 4                         | Koyali, Gujarat               |                                               | 13.700                         |
| 5                         | Bongaigaon, Assam             | Indian Oil Corporation Limited                | 2.350                          |
| 6                         | Haldia, West Bengal           |                                               | 7.500                          |
| 7                         | Mathura, U.P                  |                                               | 8.000                          |
| 8                         | Panipat, Haryana              |                                               | 15.000                         |
| 9                         | Paradip, Odisha               |                                               | 15.000                         |
| 10                        | Mumbai,Maharashtra            | Hindustan Petroleum Corporation Limited       | 6.500                          |
| 11                        | Visakhapatnam, Andhra Pradesh | Hindustan Petroleum Corporation Limited       | 8.300                          |
| 12                        | Mumbai, Maharashtra           | Bharat Petroleum Corporation Limited          | 12.000                         |
| 13                        | Kochi, Kerala                 | Bharat Petroleum Corporation Limited          | 9.500                          |
| 14                        | Manali, Tamil Nadu            | Chennai Petroleum Corporation                 | 10.500                         |
| 15                        | Nagapattinam, Tamil Nadu      | Limited                                       | 1.000                          |
| 16                        | Numaligarh, Assam             | Numaligarh Refinery Limited                   | 3.000                          |
| 17                        | Mangalore, Karnataka          | Mangalore Refinery and Petrochemicals Limited | 15.000                         |
| 18                        | Tatipaka, Andhra Pradesh      | Oil and Natural Gas Commission                | 0.066                          |
| Total                     | Total                         | Total                                         | 135.066                        |
| JV Refineries             | JV Refineries                 | JV Refineries                                 | JV Refineries                  |
| 19                        | Bina, Madhya Pradesh          | Bharat Oman Refinery Ltd.                     | 6.000                          |
| 20                        | Bathinda, Punjab              | HPCL Mittal Energy Ltd.                       | 9.000                          |
| Total                     | Total                         | Total                                         | 15.000                         |
| Private Sector Refineries | Private Sector Refineries     | Private Sector Refineries                     | Private Sector Refineries      |
| 21                        | DTA-Jamnagar, Gujarat         | Reliance Industries Limited                   | 33.000                         |
| 22                        | SEZ, Jamnagar, Gujarat        | Reliance Industries Limited                   | 27.000                         |
| 23                        | Vadinar, Gujarat              | Essar Oil Limited                             | 20.000                         |
| Total                     | Total                         | Total                                         | 80.000                         |
| Grand Total               | Grand Total                   | Grand Total                                   | 230.066                        |

- B.  List of Petrochemical Plants (Public Sector) in the Country:

## Indian Oil Corporation Limited (IOCL)

| Name of the Petrochemical Plant                      | Capacity (KTPA*)   |
|------------------------------------------------------|--------------------|
| Linear Alkyl Benzene (LAB) unit at Gujarat Refinery  | 120 KTPA           |
| Paraxylene (PX) unit at Panipat Refinery             | 360 KTPA           |
| Purified Terephthalic Acid (PTA) at Panipat Refinery | 553 KTPA           |
| Naphtha Cracker (Feed) at Panipat Refinery           | 2345 KTPA          |

Mangalore Refinery & Petrochemicals Limited (MRPL)

| Name of the Petrochemical Plant                                       | Capacity   |
|-----------------------------------------------------------------------|------------|
| Polypropylene unit                                                    | 440 KTPA   |
| Aromatic Complex unit (Paraxylene unit in OMPL, a subsidiary of MRPL) | 912 KTPA   |

## Gas Authority of India Limited (GAIL)

| Name of the Petrochemical Plant                                                                             | Capacity   |
|-------------------------------------------------------------------------------------------------------------|------------|
| Polyethylene unit at Pata near Kanpur                                                                       | 810 KTPA   |
| GAIL through JV with Brahmaputra Cracker & Polymer Limited in Assam to produce Polyethylene & Polypropylene | 280 KTPA   |

*KTPA- Kilo -Tonnes Per Annum

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