Visakhapatnam Refinery (officially: Visakh Refinery) is one of the two oil refineries of HPCL in India, the other being Mumbai Refinery. This was one of the first major industries of Visakhapatnam and first oil refinery on the East Coast. After the nationalisation, HPCL has transformed itself into a mega Public Sector Undertaking and it is second largest integrated oil company in India.
History of Visakha refinery
Visakha refinery was commissioned by Caltex Oil Refining (India) in 1957, with an installed capacity of 0.675million tonne per year.
The facility was acquired by the Government of India in 1976 and amalgamated with HPCL in 1978 by the CORIL-HPCL Amalgamation Order, 1978.
The refinery's capacity was increased to 4.5million tonne per year under the first major expansion project in 1985, known as Visakha Refinery Expansion Project-I (VREP-I).
Its refining capacity was increased to 7.5million tonne per year under VREP-II in 1999, and again to 8.3million tonne per year in 2010.
Visakh Refinery Modernisation Project (VRMP)
Source:[1]
Visakh Refinery Modernisation Project (VRMP) is a brownfield expansion of the Visakh refinery located in Visakhapatnam, India. The project is being executed by the state-owned Hindustan Petroleum Corporation Limited (HPCL).
VRMP will expand the refining capacity of the Visakh refinery from 8.3million tonne per year to 15million tonne per year, while enabling the production and distribution of Bharat Stage-VI (BS-VI)-compliant fuels.
BS VI is a new emission standard that will align India's motor vehicle regulations with European Union (EU) regulations for light-duty passenger cars and commercial vehicles, heavy-duty trucks and buses, and two-wheeled vehicles. The standard is due to be implemented in India from 2020.
The VRMP project is estimated to involve an investment of approximately $3.1bn and is scheduled for completion in 2020.
Details of Visakh Refinery Modernisation Project
HPCL received approval from the Ministry of Environment, Forest, and Climate Change (MoEFCC) for the VRMP in February 2016.
The expansion project is being carried out on an area adjacent to the east portion of the existing site.
Technology upgrades at Visakh refinery
VRMP will implement Honeywell UOP Penex™ process technology to produce a high-octane gasoline component called isomerate, and a Unicracking™ hydrocracking unit to produce cleaner burning diesel fuel.
The Penex employs high-activity isomerisation and benzene impregnation catalysts from Honeywell UOP.
Unicracking processes use highly effective catalysts to yield higher quantities of cleaner-burning fuels from a range of feedstock. The innovative configuration of the fractionation unit ensures effective separation of the products, while minimising capital costs and operating expenses.
The two processes will significantly increase the capability of the refinery to deliver petrol and diesel in compliance with the new BS-VI clean fuels standards.
"VRMP will expand the refining capacity of the Visakh refinery from 8.3million tonne per year to 15million tonne per year, while enabling the production of Bharat Stage-VI (BS-VI)-compliant fuels." The planned integration of innovative technologies will also enhance gross margins of the refinery by generating high-value transportation fuels from low-value raw materials.
VRCFP (Visakh Refinery Clean Fuels Project)
This project was implemented by the Projects Department at Visakh Refinery. This project is essentially to produce fuels for environment improvement at an estimated cost of Rs 16352 million with an FE component of Rs 2525 million.
The project was approved by the Board on 30 April 2003. M/s EIL is the consultant for the project. Process licensors include M/s UOP, M/s Axens and M/s Belco.