HPCL’s $ 3 billion Expansion Plan of Vijag refinery Delayed due to Labor Shortage and Monsoon
New Delhi. Hindustan Petroleum Corporation Limited (HPCL) has stretched the extension deadline of the Visakhapatnam Refinery till October-November. This information was given by a company source. He said that due to a shortage of Laborers and the arrival of Monsoon, the expansion plan has to be Postponed.
209.28 Billion Rupees are Estimated to be Spent on the Expansion of the Visakhapatnam Refinery!
The state-run oil refining company had earlier targeted to complete the expansion work in July. 209.28 billion rupees ($ 2.77 billion) is estimated to be spent on the expansion of the Visakhapatnam refinery. The capacity of the Seaside Refinery is expected to nearly double after expansion.
Due to the Lockdown, the work which was to be completed before the Monsoon could not be Done.
The source said that due to the lockdown implemented across the country for the prevention of Coronavirus, many laborers have migrated to their ancestral village or city. On the other hand, due to the arrival of monsoon, it has become difficult to continue the construction work. Due to the lockdown, we could not complete the work which we had to complete before the monsoon. This opportunity was lost.
To resume the activities it will need some more time before the Coronavirus Epidemic.
We have not reviewed the New status, but it appears that the project will take at least October-November to complete. HPCL, however, has not commented on the subject. The Government has relaxed the lockdown significantly. But it will take some time to resume activities before the Coronavirus epidemic. Because Interstate transport services are still closed and the virus infection is still spreading.
Monsoon Construction and Mechanical Works are Halted for Safety.
The aforementioned source said that the construction and mechanical works are usually stopped during the monsoon keeping in mind the safety. The four-month Monsoon season begins in June. This year it has reached Kerala on 1st January.
A Small Crude Distillation unit to be Replaced at the Refinery
As part of the expansion plan, a Small Crude Distillation unit will be replaced by 1.8 lakh barrels per day unit in this Andhra Pradesh refinery. The company is also building a few other units, including a Naphtha isomerization unit with 3.52 lakh tonnes per annum, a Hydrocracker of 30.53 lakh tonnes per annum, and a powerhouse. This electricity can run on both home Naphtha or natural gas.
The Capacity of Some Units to be Increased
The capacity of some units is also to be increased under the project. Under this, the capacity of naphtha hydrotreater is to be increased by 30% to 1.5 million tonnes per annum. Diesel Hydrotreater capacity is to be increased by 30% to 28.6 lakh tonnes per annum. In addition, the capacity of the continuous Catalytic Cracker is to be increased to 10.39 lakh tons annually.
