Thursday, December 11, 2008

MRPL`s mega project to go onstream by October 2011

Mangalore Refinery & Petrochemicals is augmenting its refining capacity from 9.6 mmtpa to 15 mmtpa with cutting edge technologies incorporated in the process to get the maximum value from the hydrocarbon molecule. 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 PFCCU & SRU. Engineers India is the project management consultant.

Explains U K Besu, managing director MRPL, while phase III was to have achieved mechanical completion by June 2010 and the original estimate was Rs 7943 crore, we have been beleaguered by an overheated market hampering appointment of process licensors, delay in land acquisition, and the steep Increase in steel & cement prices in the last 12 to 18 months. He put the new completion date at October 2011 and the project estimate stands revised to Rs 12412 crore as approved by MRPL board as well as by ONGC board under Navratna empowerment.

Despite 50% cost Overrun, and a 15 month time overrun, MRPL has benefited from the delay because as the country was exposed to unprecedented volatility in crude prices and the consequent market dynamics, MRPL quickly seized the situation and re-engineered the process design to make the new Unit capable of handling high tan an acidic crudes more than envisaged before, added some more secondary processing units to upgrade residues and the entire HSD (diesel) quality.The company made this announcement after the trading hours on 11 December 2008.

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