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MRPL Aims to Continue Operate South India Refinery at Full Capacity

Mangalore Refinery and Petrochemicals Ltd aims to continue operating its southern India refinery at full capacity on improved cracks and as it commissions a desalination plant to improve water supply, its managing director said.

 

The refiner has been cutting its crude processing for decades, mainly during the June quarter, due to shortages of water which is needed for cooling operations and power generation. "We have installed a desalination plant. It is under commission so we don't anticipate any (water) shortages from next year," said M. Venkatesh. Instead of drawing water from a river, MRPL will process sea water.

 

Venkatesh expects MRPL's 300,000 barrels per day refinery to operate at full capacity. "The current Singapore cracking margins are quite healthy and demand projections are good so it is warranting 100% production." MPRL posted a loss in its financial years to the end of March 2020 and 2021 as the pandemic reduced fuel demand and subsequently squeezed refining margins.

 

"This year we may be turning positive because October-November physicals are fantastic," he said, adding that his firm had already implemented major maintenance shutdowns in August and September. However, there could be some 'minor' shutdowns of secondary units in the next financial year from April.

 

Venkatesh said the merger of ONGC-Mangalore Petrochemicals Ltd (OMPL) with MRPL, which it aims to complete this year, would raise his company's gross refining margins by 50 cents to $1/barrel and give it the flexibility to switch between the production of gasoline and paraxylene to maximise profits.

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