IOC lets contract for Panipat refinery expansion project

Indian Oil Corp. Ltd. (IOC) has let a contract to Chevron Lummus Global LLC (CLG)—a partnership of Chevron USA Inc. and Lummus Technology LLC—to license a suite of process technologies for the operator’s previously announced plan to expand its 15-million tonnes/year integrated Panipat refining and chemical complex in Haryana, India, north of New Delhi (OGJ Online, Mar. 2, 2021; July 26, 2019).

As part of the Apr. 13 contract award, CLG will provide licensing of its proprietary ISOCRACKING, ISODEWAXING, and ISOFINISHING technologies for a new catalytic dewaxing unit designed to produce mainly premium API Group III base oils by processing unconverted oil from an upstream hydrocracking unit, the service provider said.

Alongside licensing, CLG’s scope of delivery under the contract also includes delivery of basic engineering, proprietary equipment, catalyst, and technical services for the unit, which aims to help reduce India’s current dependence on base oil imports.

According to a 2018 summary of the project IOC submitted to the Indian government, the new catalytic dewaxing unit will have a nameplate capacity of 560,000 tpy.

The contract follows IOC’s February 2021 approval of the refinery expansion, which will increase crude processing capacity at the site by 10 million tpy to 25 million tpy.

Designed to improve operational flexibility of the refinery to help meet domestic energy demand, the capacity expansion project—which will include installation of a polypropylene unit—would also increase production of petrochemicals and value-added specialty products to elevate margins and derisk IOC’s companywide exposure to its conventional fuel business.

Budgeted at an estimated cost of 329.46-billion rupees, the Panipat capacity expansion is slated for commissioning by September 2024, IOC said in February.