HPCL tenders for Vizag expansion any day now

Vol 20, PW 13 (23 Mar 17) Midstream & Downstream

Hindustan Petroleum is at last expected to begin inviting bids this month (March) for the expansion of its 8.33m t/y Vizag refinery to 15m t/y, according to contractors.

HPCL has divided the expansion project into four main Engineering, Procurement, Construction and Commissioning (EPCC) packages; the most important is EPCC-1 to set up a 9m t/y Crude Distillation and Vacuum Distillation Unit. Contractors say HPCL has told them informally that this tender will come out first, this month (March).

A Crude Distillation Unit separates the components of crude oil by using their different boiling points while a Vacuum Distillation Unit further separates out heavier components which cannot be distilled by the Crude Distillation Unit. Industry sources say HPCL will licence the technology for these units from its project consultant Engineers India.

EPCC-1 will have no pre-qualification process unlike the other EPCC packages. Expect bids from companies like Toyo Engineering, Technip, CTCI with Cinda, Larsen & Toubro and Punj Lloyd for this nearly Rs1500cr ($228m) contract.

Next in line is the EPCC-2 package for the Full Conversion Hydrocracker unit, which converts gas oil feedstock to High-Speed Diesel and LPG. EPCC-3 is the Residue Upgrading Unit, which removes metals, sulphur, carbon residue and nitrogen from the oil remaining after distillates have been removed.

EPCC-4 will be the Naphtha Isomerisation Unit which converts naphtha to other products. UOP will provide technology for EPCC-2 and 4.

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