Essar to Increase Indian Refinery Capacity

Essar Oil will enhance the capacity of its refinery in Gujarat, India, by two million tonnes, bringing its total capacity to 20 million tonnes per year.

Essar will increase the capacity through optimisation of some of the refinery units at an estimated cost of Rs16.9bn ($380m). The project is expected be completed by September 2012.

The company will expand the refinery’s capacity to 18mtpa (375,000bpsd) from 14mtpa (300,000bpsd) as part of the project’s first phase, which is expected to be completed between the first and second quarters of 2011.

The optimisation project entails the revamp of six refinery units: a fluid catalytic cracking unit, a diesel hydro desulphurisation unit, a sour water stripping unit, a diesel hydrotreater, a vacuum gas oil hydrotreater and a delayed coker unit.