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HPCL Delays $3B Refinery Expansion

Source: 6/10/2020, Location: Asia

Hindustan Petroleum Corp Ltd has pushed back the completion of a billion-dollar expansion at its southeastern Vizag refinery to at least October-November due to a labor shortage and the onset of monsoon. The state-run refiner had initially planned to complete the 209.28 billion rupee ($2.77 billion) expansion, which will nearly double the capacity of its coastal plant to 300,000 barrels per day (bpd), in July.

Many workers have returned to their hometowns due to the nationwide lockdowns to curb the spread of coronavirus, while the onset of monsoon has made it difficult to carry out construction work. The expansion includes the replacement of a smaller crude distillation unit with a new 180,000 bpd at the refinery in Andhra Pradesh state. HPCL is also building facilities including a 0.352 million tonnes per year (tpy) naphtha isomerisation unit, a 3.053 million tpy hydrocracker and a power plant that can run on either naphtha or natural gas. The project also involves the revamp of units including a 30% increase in capacity of naphtha hydrotreater to 1.5 million tpy and diesel hydrotreater to 2.86 million tpy, while the capacity of continuous catalytic cracker will be raised to 1.039 million tpy.

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