Hindustan Petroleum Corporation is scouting for partners for investments, crude oil procurement and product marketing as part of its proposed expansion plans at the Vizag refinery. The capacity will be increased by 9 million tpa.

Engineers India in its draft report of the feasibility study submitted to HPCL for the proposed expansion estimated that the project cost will be around Rs.9,000 crore.

Currently, the Vizag refinery crude refining capacity is 7.5 million tpa. To upgrade the products quality to Euro-3 and Euro-4 norms, the corporation has taken up clean fuel project at an investment of about Rs.2,200 crore. The project is expected to be ready by May-June 2007 and after completion of the project, the refinery capacity will increase to 8.3 million tpa. After adding 9 million tpa capacity to the refinery, HPCL will dismantle one of its old plants, which had a capacity of 1.5 million tpa.

As part of the expansion plans, HPCL requires an additional land of about 400 acres for construction of crude oil storage terminal near the existing refinery. In this regard, HPCL has approached the Vizag port, which has in principal agreed to allot land on a long lease basis.

Also See:

HPCL eyeing partners for Bhatinda, Vizag projects (31-Oct-06)

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