Mangalore Refinery and Petrochemicals Limited (MRPL), a subsidiary of ONGC, is embarking on a fourth phase expansion involving a massive investment of R24,000 crore. The company currently operates a 15 million metric tonnes per annum refinery at Mangaluru on the west coast in Karnataka.
The new expansion envisages expanding the capacity of its refinery to 25 MMTPA, which will also includes a raw petroleum coke gas complex, synthetic gas complex and value added chemicals such as urea, acetic acid, acryilate among others. MRPL has asked Engineers India to prepare a detailed feasibility report for expansion of its refining capacity.
“We are planning to expand the refinery capacity to 25 MMTPA, set up facilities for several new products. The company’s board is yet to finalise the exact amount of investment required. We are also in the process of upgrading the quality of fuel to meet BS-VI emission norms,” a company official said.
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However, the large and medium industries minister of Karnataka R V Deshpande confirmed to FE that the investment would be R24,000 crore, one of the highest amounts on an expansion project in the state. He said the government has set in motion the process for acquiring additional land for the company adjacent to its refinery in Mangaluru. The high level clearance committee, that clears large investment projects, recently approved the proposal from MRPL, he said.
“We need at least 1,000 acres of land for our expansion. The state government has issued preliminary notification for acquiring 1,010 acres land at three villages near our refinery,” MRPL official said.
MRPL had to upgrade facilities to produce automobile fuel — both petrol and diesel — to meet the BS-VI emission standards following the recent guidelines from the government. The government has made it mandatory for refineries to produce BS-VI compliant fuel. The new norms come into effect from April 2020.
“In order to upgrade our facilities to meet new emission standards, we will be investing R1,800 crore and the project will be completed by end of 2019 ahead of the government deadline,” the MRPL official said. With the upgradation of its facilities, MRPL will be able to produce automobile fuel which will have a sulphur content of 10 part per million from the present 50 parts per million.
Two years ago, MRPL completed its Phase-III expansion and upgradation project with commissioning of Petrochemical Fluidized Catalytic Cracking unit (PFCCU).
MRPL has also drawn up ambitious plans for consolidating retail business by setting up sizable number of retail outlets in near future. For the year 2015-16, MRPL processed 15.53 million metric tonnes of crude oil. It recorded a turnover of R50,864 crore and a net profit of R1,148 crore.