MRPL revises phase III expansion costs, delays expansion by 15 months

12-Dec-08

Market conditions have delayed the phase III expansion project of Mangalore Refinery and Petrochemicals Ltd (MRPL) by 15 months. The delay, that has revised project costs by Rs 4,469 crore more, has helped it to re-engineer the process design. Exposed to unprecedented volatility in crude prices and the consequent market dynamics, MRPL has re-engineered the process design to make the new unit capable of handling high tan and acidic crudes more than envisaged before, and added some more secondary processing units to upgrade residues and the entire HSD (diesel) quality. Date for completion of the project has been revised to October 2011 and project cost has been revised to Rs 12,412 crore. Under the phase-III, MRPL is boosting refining capacity from 9.6 mln tpa to 15 mln tpa. Preparatory work has been on for sometime now and the mandatory approvals have since been secured, process licensors appointed, and work awarded for execution of petrol fluidised catalytic cracking unit (PFCCU) and sulphur recovery unit (SRU). Engineers India Ltd is the Project Management Consultant. The company has brought in the best of technology, is better equipped to handle the crude price movements and take advantage of the differential pricing in high tan, acidic crudes that most refineries in India cannot process.