Bid & Tender
IOC Paradip Plant to Start Making Gasoline by Year-End, Says Executive

Date : Sep 09, 2016

The Paradip refinery was designed to produce Euro IV- and Euro V-compliant fuels.

 

India's biggest refiner Indian Oil Corp (IOC) plans to start producing gasoline at its Paradip refinery before the year ends following a delay caused by problems at a secondary unit, an executive said on Thursday.

 

 IOC started up the 300,000 barrels per day Paradip refinery in late 2015 and has a continuous catalytic reformer (CCR) which turns naphtha into gasoline. The CCR was commissioned in March but was functional only for a week due to compressor problems, prompting IOC to export the naphtha volumes.

 

The (Paradip) refinery is designed not to make naphthabut we have problems with one of the units. We do not want to export naphtha. It is heavy losses for us," said Sanjiv Singh, executive director of IOC's refineries division, on the sidelines of the Asia Pacific Petroleum Conference in Singapore. "We want to convert naphtha into gasoline and petrochemicals," added Singh.

 

Singh added that he expects the compressor problem to be resolved in about a month's time but it will still take a few weeks to clear out the naphtha stocks. Once the secondary unit stabilises, IOC aims to stop exporting naphtha, which is generating crack margins of only $34.98 a metric ton to Brent crude currently, versus $86.03 a year ago.