IndianOil wants PMC for MEG at Paradip

Vol 18, PW 25 (13 Aug 15) News in Brief

IndianOil is expected to issue tenders by mid-September to select a Project Management Consultant to prepare a Front End Engineering and Design (FEED) report for a proposed Mono Ethylene Glycol (MEG) unit at its 15m t/y Paradip refinery.

Likely bidders say IOC plans to invest about Rs2500cr ($416m) in the MEG project, making it one of the largest EPC projects available in the market. Industry sources say IOC's plans for the MEG unit are "almost off the drawing board" and about to be tendered out soon.

Details such as the capacity of the unit are expected to be finalised in the FEED report. Ethylene - the raw material for MEG - will be sourced from the Paradip refinery, likely to be fully operational by December 2015 after commissioning finally began in February this year with various units being tested one after another.

Originally conceived as a 9m t/y refinery, Paradip's foundation stone was laid in May 2000 and the project was scheduled for completion by May 2003.