Bhatinda refinery ready by December 2005

Vol 5, PW 12 (01 Aug 01) Midstream & Downstream

Don't laugh; Hindustan Petroleum is deadly serious about its 9m t/y greenfield refinery plant at Bhatinda in Punjab, despite serious questions on the need for extra refining capacity in India.

Concerns on this issue have taken a back seat as HPCLforges ahead with construction of the 'Guru Gobind Singh' refinery and its 140-MW residue-fired captive power plant. In a presentation to junior oil minister Santosh Gangwar this month Hindustan Petroleum reveals in detail the progress so far.

We learn for example that HPCL has spent Rs118cr on development work out of an initial budget of Rs200; that work on an approach road to the refinery site began on 12th March and was 40% complete by end-June; that construction of the "raw water channel" is 90% complete; that the estimated capital cost of the entire project is Rs9,806 and that on 7th June the oil ministry granted approval to raise equity capital. By August this year HPCL hopes to begin the process of appointing a Project Management Consultant for the refinery (including financing) with the release of a pre-qualification tender.

Engineers India was appointed Engineering PMC on 23rd May. Most government approvals seem to be in place - including the all-important and time-consuming approval from the Ministry of Environments & Forests.

Negotiations with the Gujarat Maritime Board for a crude oil terminal at Mundra are also complete. All that's left is the commissioning.

Target date: December 2005.