IOC wants $340m Koyali upgrade consultant

Vol 18, PW 19 (21 May 15) Midstream & Downstream

IndianOil wants bids submitted by June 8 in a tender to appoint an Engineering, Procurement and Construction Management (EPCM) consultant to manage the upgrade of its Koyali refinery in Gujarat so it can supply BS-IV standard petrol and High Speed Diesel (HSD).

IOC estimates it will cost Rs2166cr ($342m) to upgrade the 13.7m t/y (274,000 b/d) refinery, originally set up in the 1960s with Soviet aid, to meet the oil ministry’s target to begin supplying higher quality fuel by April 1, 2017 under the ambitious ‘one country-one fuel’ policy. This includes a Rs405cr ($64m) foreign exchange component and Rs143cr ($22.57m) finance cost.

In late March, the IndianOil Board approved the Koyali revamp feasibility report after it was submitted to IOC’s Delhi-based Refinery Headquarters (RHQ) on September 23, 2014. Then on May 9 IOC issued the EPCM tender for project management and a DFR.

“We’re not putting up new units,” clarifies a Koyali source. “But to meet the statutory requirement (of supplying BS-IV fuel) we’re opting for a low cost revamp of established units.

” Four process units to be upgraded are the DHDT (Diesel Hydrotreater) unit from 2.2m t/y to 2.86m t/y, the DHDS (Diesel Hydrodesulphurisation) unit from 1.77m t/y to 2.2m t/y, the VGO-HDT (Vacuum Gas Oil Hydrotreater) unit from 2.1m t/y to 2.73m t/y and a 30% capacity increase in the 72,500 t/y HGU (Hydrogen Generation Unit).

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