Mangalore Refinery & Petrochemicals has proposed to undertake an integrated refinery upgrade project costing Rs.12,800 crore. The proposal has been recommended for approval from its parent company, Oil & Natural Gas Corporation.

The project involves modernisation of the existing petroleum refinery with a view to improving crude distillate yields and setting up of new facilities for production of modern petrochemicals.

The refinery upgrade envisages production of Euro III and Euro IV grade petrol (gasoline) and diesel, which are in good demand in the international market. Production capacities of key petrochemicals -- propylene and paraxylene -- will be enhanced to 3 lakh tpa and 9 lakh tpa, respectively.

New Units: MRPL has proposed to enter the high-end lubes market by setting up a new 2.5 lakh tpa lube oil base stock production facility.

Besides, a standalone aromatic complex will be developed to produce paraxylene -- the feedstock for purified terephthalic acid -- using naphtha from the refinery complex. The aromatic complex will be located within the Mangalore SEZ (see note).

The entire project -- refinery upgrade, LOBS facility and the aromatic complex -- will be commissioned within three and a half years from zero date.

ProjectsToday adds: The investment plans discussed above are distinct from the Mangalore petrochemical SEZ project in which MRPL will play sheet anchor role. The Mangalore SEZ -- an initiative of ONGC -- will be implemented by a consortium of companies including MRPL, IL&FS, Kanara Chambers of Commerce & Industry and Karnataka Industrial Areas Development Board. The Rs.25,000 crore Mangalore SEZ project would involve in setting up of a 10 million tpa LNG terminal, a C2/C3 extraction plant and a petrochemicals complex. The complex will also include a power plant and a gas pipeline network for supply to user industries.

Also See:

IL&FS to join Mangalore SEZ (25-Jan-06)