Make money at Koyali from low prices

Vol 18, PW 15 (26 Mar 15) News in Brief

Low crude prices and the chance to make huge money were behind IndianOil's decision to delay the annual maintenance shutdown of its 13.7m t/y (274,000 b/d) Koyali refinery by six months from October last year to March 24 last week.

“Because oil prices were falling," says a senior refinery source, "we thought let’s not lose this opportunity to make profits.” Koyali will shut for 45 days to maintain its cooling tower and fluid catalytic cracker unit and other facilities.

“One aim is to improve the quality of diesel,” he adds. “Koyali will restart operations from May 9.

” During the shutdown, Koyali will stop taking 137,000 b/d of imported oil through the Vadinar terminal but will continue to take 118,000 b/d of domestic oil through the north and south Gujarat pipelines. Product supplies will not be hit as IOC’s Mathura and Panipat refineries have been asked to standby and divert surplus to Gujarat.

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