MOSCOW (MRC) -- HPCL-Mittal Energy Ltd. (HMEL) has let two contracts to a consortium of Maire Tecnimont SPA subsidiaries to provide engineering, procurement, construction, and commissioning services for implementation of two petrochemical units to be located adjacent to HMEL’s 9 million-tonne/year Guru Gobind Singh refinery at Village Phullokhari, about 35 km from Bathinda in India’s northern state of Punjab, said Ogj.
As part of the lump-sum contracts, Tecnimont SPA and Tecnimont Private Ltd. will deliver EPCC services for a 450,000-tpy high-density polyethylene (HDPE) and a 500,000-tpy polypropylene (PP) unit at the site, Maire Tecnimont said.
Valued at about USD225 million, the two contracts include EPCC services up to the performance guarantees test run of the monomer purification sections and the polymerization areas, the service provider said.
The consortium’s scope of work on the project will last 25 months to mechanical completion.
The HDPE and PP units come as part of HMEL’s proposal to build an integrated petrochemical manufacturing site (Guru Gobind Singh Polymer Additions Complex) within Guru Gobind Singh’s existing refinery complex to help maximize returns as well as expand its product portfolio.
Alongside the HDPE and PP units, the new complex will feature a mixed-feed 1.2 million-tpy ethylene plant—expandable to 1.5 million tpy—which will include the steam cracker, refinery off-gas treatment unit, C4 hydrogenation unit, pyrolysis gasoline hydrogenation unit, and benzene extraction unit.
The petrochemical addition also will include a 55,000-tpy butene-1 unit and two 400,000-tpy linear low-density/HDPE swing units, according to documents filed with India’s Ministry of Environment, Forest & Climate Change (EFCC).
EFCC documents also show the project will involve the addition of captive utility generation installations (recirculating cooling-water system, compressed air system, inert gas system, fuel gas system, flare system, condensate polishing unit, and demineralization water treatment system) as well as offsite-storage facilities for the following:
The proposed petrochemical expansion comes alongside HMEL’s execution of its 11 billion-rupee upgrading project to meet Bharat Stage (BS) 6-grade (equivalent to Euro 6-quality) fuel specifications at the Guru Gobind Singh refinery as part of the public-private partnership’s broader plans to expand the manufacturing site’s crude processing capacity to 11.25 million tpy from its current 9 million-tpy capacity (OGJ Online, June 26, 2017).
Approved for environmental clearance by EFCC in June 2015, the capacity expansion, now under way, includes a combination of new units as well as debottlenecking work at existing units to improve throughput rates.
The BS 6-grade fuel specifications project is scheduled to be commissioned by September 2019, according to HMEL, a joint venture of state-owned Hindustan Petroleum Corp. Ltd. and privately held Mittal Energy Investment Pte. Ltd., Singapore.
AS MRC informed earlier, HPCL-Mittal Energy Limited, or HMEL, will start a new 500,000 mt/year polypropylene (PP) plant in Bhatinda in 2021. The company has an existing 440,000 mt/year PP unit at the same site.
As per MRC ScanPlast, August PP production in the country decreased to 119,000 tonnes, compared with 122,700 tonnes in July; SIBUR Tobolsk decreased their capacity utilisation. Russia"s overall PP production reached 973,700 tonnes in January-August 2019, compared to 954,100 tonnes a year earlier. Only Poliom reduced production volume, and the largest increase in output was shown by Tomskneftekhim.
Hindustan Petroleum Corporation Limited (HPCL) is an Indian state-owned oil and natural gas company with its headquarters at Mumbai, Maharashtra and with Navratna status. HPCL has about 25% marketing share in India among PSUs and a strong marketing infrastructure. The Government of India owns 51.11% shares in HPCL and others are distributed amongst financial institutes, public and other investors.
MRC