Essar Oil quadruples processing of ultra heavy crude oils
Vadinar refinery, which is amongst the most complex units globally, has stabalised operations at its expanded capacity of 20 million tonnes per annum (MTPA), the company said in a presentation to analysts after July-September quarter
The refinery's diet of ultra heavy crude, which are cheaper and offer better margins, rose four fold to 64 per cent in July-September from 15 per cent a year ago. The refinery processed almost 3.21 MT of ultra heavy crude oil in the quarter.
The company had turned 5.07 MT of crude oil into products in the second quarter.
Essar said secruity of supply of ultra heavy crude oil as it has signed term contracts for 70 per cent of requirement with Latin American, Middle East and domestic suppliers like Cairn India.
As a result, it earned USD 7.86 for turning every barrel of crude oil into petroleum product in Q2 in the July- September quarter as against a gross refining margin of USD 5.07 per barrel in the same period a year ago.
In September, the GRM was as high as USD 10.83 per barrel, Essar said adding full benefit of higher complexity post expansin projects will start getting reflected from the current quarter.
Valuable light distillates (LPG and petrol) and middle distillates (kerosene and diesel) improved to 81 per cent of the product slate from 72 per cent over
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