Essar begins trial production at refinery

Vol 10, PW 16 (30 Nov 06) News in Brief

Essar Oils long overdue refinery at Vadinar in Gujarat has finally begun production.

On 24th November, Essar said trial production has begun with an initial capacity of 7.5m t/y and that this will gradually go up to (full capacity of) 10.5m t/y. Currently, we hear, the refinery is producing LPG, naphtha, diesel, fuel oil, kerosene and vacuum gas oil.

At full production the entire range of products up to bitumen will be produced, we are told. Full production will be reached within the next two quarters.

Essar said the current phase of commissioning comes four months ahead of the originally scheduled date of 31st March. Essar said the project cost of Rs10,826cr ($2.4bn), is extremely competitive and lower than estimated costs for a new refinery.

Essar adds the refinery has been designed to handle a range of crude oils, from sweet to sour and light to heavy. Essar joins Reliance as the second private sector company to own a refinery in India, both located in Gujarat.

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