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Business Major Projects
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MAJOR PROJECTS COMPLETED:

Refinery-III capacity Expansion by 1.0 MMTPA

In order to produce additional value added products like LPG, Naphtha, SK, HSD, etc. meeting latest fuel norms, existing Refinery-III capacity at Manali Refinery was expanded from 3.0 MMTPA to 4.0 MMTPA. M/s. Engineers India Ltd. carried out detailed engineering, procurement and construction management of this project. This project has been completed by April 2010 and the plant is in operation. The total cost of the project was 200.41 Crores.

Revamp of existing Naphtha Hydro-treating / Catalytic Reforming Unit

To produce high quality Motor Spirit (with higher Octane number) meeting Euro-IV specifications, the existing Naphtha Hydro-treating / Catalytic Reforming unit with semi regenerative cycle was revamped to higher capacity with continuous regenerative cycle at an estimated cost of Rs.272.77 crore. The plant was commissioned in May 2010.

B) MAJOR PROJECTS UNDER IMPLEMENTATION:

1) Euro-IV Preparedness on Auto Fuels

As per the Auto Fuel Policy of the Government of India, Auto Fuel Quality Upgradation Project (to produce MS/HSD meeting Euro-IV specifications for Chennai and Bangalore and Euro-III equivalent specifications for the rest of the locations from April 2010 onwards) has been undertaken at an estimated cost of Rs. 2615.69 crore in Manali Refinery. M/s Engineers India Ltd. (EIL) were engaged for Design, Engineering, Procurement and Execution of this project on ‘Open Book Estimate Contract’ Methodology.

The details of the Auto Fuel Projects are as given below:

The Naphtha Hydro-treater / Isomerisation (NHDT/ISOM) unit for MS production has been mechanically completed and commissioning jobs are in progress.
The Diesel Hydro-treater (DHDT) unit for Diesel quality Upgradation has been mechanically completed and pre-commissioning jobs are in progress.
Other Utilities and Offsite packages are in various stages of progress and expected to be completed by May 2011
A new Hydrogen Generation Unit to augment the existing Hydrogen Generation capacity is under construction and expected to be completed by Dec. 2011.

2) Revamp of existing CDU/VDU-II from 3.7 to 4.3 MMTPA:

As per Euro-IV Diesel specification under the Diesel Quality Improvement projects (the production of Diesel confirming to ASTM D 86 to have 95% (vol) recovery at a temperature of 360 oC (max)) and also to enhancement unit capacity from existing 3.7 MMTPA to 4.3 MMTPA is being implemented. EIL has been awarded as PMC for Design, Engineering, Procurement and Execution of this project. The cost of this project 333.99 Crores is approved. The project is expected to be completed by March 2012.

C) Future Projects:

1) Resid up-gradation Project

To improve the distillate yield of Manali refinery, Resid Upgradation Project has been conceived. The project has been awarded to M/s Jacobs for Design, Engineering, Procurement and Execution of this project. The Process Packages for all the Process units have been completed.
The scope of work has been divided into 2 phases:

Phase-I: Covers preparation of Utilities& offsite package, Finalizing orders on Long lead items, Preparation of DFR and Tender for enabling jobs
Phase-II: Covers execution of the project including OHCU Revamp and additional packages for Utilities & Offsite.

Final DFR expected by Feb 2011 after which Investment approval would be made. Anticipated completion of the project would be 33 months from the date of investment approval.

2) New Crude Oil Pipeline

To overcome the risk associated with transportation of Crude Oil through the aging existing 30” Crude Oil Pipeline, laying of a new 42” Crude Oil Pipeline as replacement, from Chennai Port to Manali Refinery along the route of the proposed Port Connectivity Road was conceived.

The entire implementation of 42” Crude Oil Pipeline awarded to M/s.IOCL at a cost of Rs.120 Crore (under Reimbursable cost plus basis), for Design, Detailed Engineering, Procurement, Tendering, Project Management, Construction Management and supervision during installation, testing and pre-commissioning, commissioning and handing over the project to CPCL.

The entire work is planned for completion in all respects within 18 months reckoned from the date of signing of the Agreement or 12 months from the date of handing over of clear RoW by CPCL whichever is later.

Sl.No	MoS & Pl SlNo	Proj Name/ Description	Name Of PSU	Board Sanction date	Original Board Completion date	Latest Board Compdate	Anticipated Completion Date (Mechanical Completion)	Original Board Sanction Cost(Rs Crs)	Latest Board Sanction Cost (Rs crs)	Ant.Cost (Rs crs)	Cum Expenditure (Rs Crs)	Fin. Prog %	Phy. Prog
1.1	1035	Auto fuel Project Euro-IV	CPCL	25.08.06	DHDT: May-10	DHDT: July -10	DHDT: Oct’10*	2615.60	2615.69	2615.69	1218.82	47.0%	98.5%
1.2					NHT/ISOM: Jan-10	NHT/ISOM: May-10	NHT/ISOM: Sep ’10*						99.5%
1.3					U&O: Dec 10	U&O: Dec-10	U&O: Mar’11						63.15%
1.4					HGU: May’11	HGU: Dec-11	HGU: Dec’11						45.65%
					Overall Euro-IV								79.7%
2	1032	Ref-II Revamp	CPCL	22.03.2010	25.03.2012	25.03.2012	25.03.2012	333.99	333.99	333.99	15.49	5.0%	10.3%

SUMMARY STATUS OF MAJOR/MEGA PROJECTS IN PETROLEUM SECTOR (AS ON 30.10.2010)

* - Actual Mechanical completion

Ongoing Projects
Plan Projects

5.8 MGD Desalination Project

With a mission to achieve self-sufficiency in the water front, a project for installation of a 5.8 MGD Desalination unit at an estimated cost of Rs. 231.34 crore is under implementation. This project is expected to go on stream by March 08.With the commissioning of this unit, CPCL would be able to meet its total water requirements through in-house sources/facilities.

Crude Oil Pipeline Project:

A new 42” Crude Oil Pipeline as a replacement of the existing 30”ageing Crude Oil Pipeline is proposed to be laid from Chennai Port to Manali Refinery along the route of the proposed Port Connectivity Road. The estimated project cost is about Rs.65 crore. This new line will also facilitate faster unloading of crude oil from tankers. The project is expected to be completed in 12months time from the completion of Road works and Rehabilitation activities.

Revamp of CDU-VDU of Refinery-III

The Crude and Vacuum Distillation unit (CDU/VDU) of Refinery III with a design capacity of 3.0 MMTPA was commissioned in February 2004.This unit was designed by M/s Engineers India Limited (EIL).

CPCL explored the possibility of increasing the capacity of CDU/VDU in Refinery III and proposed to carry out low cost revamp of CDU/VDU III. Accordingly, approval was obtained from CPCL's management in July 2005 for awarding the job to M/s EIL for preparation of Process Package. EIL has completed the preparation of Process Package and cost estimate for the revamp.

As part of the design basis of the project, the major equipments in the unit viz. the Atmospheric Heater, Atmospheric Column, Vacuum Heater and Vacuum Column are to be retained. Based on the above criteria, the maximum capacity after revamp has been fixed at 4.0 MMTPA as limited by the diameter of the vacuum column. Hence, based on the diameter limitation of the vacuum column, the maximum achievable capacity of the unit after revamp is fixed at 4.0 MMTPA.

Major modifications/changes in the equipment that would take place are addition of pre-flash drum, a second stage desalter, replacement of high capacity trays in Atmospheric column, use of high capacity packing (s), replacement of burners besides installation of new Pumps and Exchangers.

The present Refinery III has a merox unit (licensed by M/s UOP, U.S.A.) with capacity of 5250 kg/hr for removal of mercaptans from LPG. The required capacity after revamp is about 12000 kg/hr for the controlling crude case (Upper Zakkum). Alternate technology developed by EIL and IOC-R&D viz. CFC for removal of mercaptans, has been adopted for the additional LPG from the revamp.

There will be incremental production of fuel products on account of revamp.

LPG: 24000 TPA, Naphtha: 115000 TPA, SK/ATF: 285,000 TPA, Diesel 170,000 TPA and Fuel Oil: 330,000 TPA

The total capital cost of the proposed project revamp was worked out as Rs.134.34 crore, including the financing charges of Rs.3.12 crore. The financing charges were estimated based on debt: equity of 1:1. The above capital cost includes a foreign exchange component of Rs.8.63 crore.

CPCL board issued the investment approval in August, 2006. M/s EIL has been lined up as Engineering, Procurement and Construction (EPC) consultant. The project is scheduled to be commissioned by May’2009.

Revamp of existing Naphtha Hydrotreating/ Catalytic Reforming Unit (Semi Regenerative type) to Continuous Catalytic Reformer (CCR)

The existing Naphtha Hydro treating and Catalytic Reforming unit(NHT/CRU) located in Refinery III with an installed capacity of 225,000TPA ( reforming section) was designed by M/s.Axens, France. The unit was commissioned in February 2004, and since then the unit has been operating smoothly.

With the commissioning of 3 MMTPA expansion cum modernization project and FCC revamp project, CPCL presently produces EURO III equivalent / BS II quality MS as per auto fuel policy. In pursuant to strategy of meeting EURO IV equivalent specification for the rest of the regions CPCL explored the possibility of converting the existing Semi-Regenerative Catalytic Reformer (SCR) to a Continuous Catalytic Reformer (CCR) to increase the octane number from 98 to 102, besides maximizing its capacity. Hence the conversion of Semi Regenerative Reformer to CCR with reformate of RON 102 will be become necessary to enable CPCL to meet the higher –octane requirement. Also this revamp in combination of proposed Isomerisation unit of about 140,000 MT per annum will also facilitate CPCL to maximize the MS production to the level of about 1.0 MMTPA to meet the increased demand.

M/s Axens, France (Process Technology licensor) confirmed the Technical feasibility of conversion from SCR to CCR and also the capacity increase by about 35% i.e. from 225,000 TPA to 303,000 TPA. M/s Axens completed the process package in May 2006 and cost estimation was done by M/s Engineers India Limited.

As part of the revamp, the following major modifications /Additions in the different sections of the unit are expected to be under taken.

No major modifications are foreseen in the Naphtha splitter, the following modifications to the Reforming unit have been envisaged:

It is proposed to add a small new reactor (first position) and a new furnace. Operating pressure will be slightly increased to avoid bottleneck on recycle compressor (for compensation of increased pressure drop in the loop by higher capacity and new reactor and furnace).

As part of the conversion of existing SEMI regeneration type to CCR type, a catalyst regeneration section is also to be added as new facility within in the unit limits.

The additional utilities required is quite low for the proposed project, it will be met from the existing facilities. The additional products from the expansion are confirmed to be evacuated by Oil Marketing/ Pipe line divisions of Indian Oil Corporation Limited

The cost of the project was estimated to be Rs. 234.09 crore including a foreign exchange component of Rs.58.55 crore and financing charges of Rs.6.43 crore. The project is scheduled to be completed by October’ 2009.

Euro-IV Project for quality up-gradation of Auto Fuels (MS and Diesel)

As per the Auto Fuel policy of Government of India, fuels viz. MS and HSD are to be produced to meet Euro IV equivalent specifications for 11 cities and Euro III Equivalent specification for the rest of the country from April 2010 onwards. As part of CPCL’s endeavor to meet the future auto fuel specifications, CPCL carried out a Preliminary Feasibility Study through M/s Engineers India Limited and identified the facilities needed for this requirement.

The following units are proposed to be added for Euro-IV project besides creation of required utilities and offsite facilities:

Diesel Hydrotreating Unit - 1.8 MMTPA capacity
Naphtha Hydrotreating Unit - 0.2 MMTPA capacity
Isomerisation Unit - 0.14 MMTPA capacity
Hydrogen Generation Unit of 21000 TPA
Revamps of Sour Water Stripper Unit and Sulphur Recovery Units
Frame VI GT - 30 MW

The major utilities and offsite facilities envisaged for the project include one Cooling Tower Cell (3800 m3/hr), one DM water Chain (150 m3/hr), one Compressed Air System, an Air Separation unit (360 Nm3/hr of gaseous N 2 and 36 Nm3/hr of liquid N 2) and a Flare System in addition to the required feed and product tanks.

The cost of the project as per the PFR was estimated to be Rs.1665 crore including a foreign exchange component of about Rs. 325 crore and financing charges of about Rs. 61 crore. After the execution of the Euro IV project CPCL will be able to produce MS and HSD of Euro III / Euro IV specifications and also 100% Euro IV specifications.

CPCL’s Board in its meeting held on 25 th August 2006 accorded its approval to carry out pre-project activities for Euro-IV Project at an estimated cost of Rs.48 crore. The commissioning of NHT/ISOM segment is slated to be completed by January 2010 and DHDT by July 2010.

Non-Plan Projects

Installation of 20 MW Gas Turbine:

This project would further strengthen the Company’s infrastructure at the cost of Rs.157.88 crores. This project will enhance the reliability and quality of captive power generation of Manali Refinery. The project is expected to be completed by February 2008..

Additional Crude Tanks:

Two more Crude tanks are being added to the present strength to augment the crude storage capacity at Manali, at an estimated cost of Rs. 80.57 crore. These additional tanks are expected to be in place by June 2009.