Daijiworld Media Network - Mangalore (SP)

Mangalore, Dec 12: Mangalore Refinery and Petrochemicals Limited (MRPL), a subsidiary of ONGC which is keen on turning the global recession to its advantage, has planned to expand its refining capacity from the present 9.6 million metric tonnes (MMT) per annum, to 15 MMT per annum. The company would be able to reach the revised level upon completion of the Phase III which is expected to be completed by October 2011. Earlier, the expansion programme was expected to be completed by June 2010, said a press release issued by MRPL managing director U R Basu.

The company has said that the original estimate of phase III had to be revised thoroughly because of wild fluctuation in steel and cement prices, pushing the completion date farther. The project cost shot up from the earlier estimate of Rs 7,943 crore to Rs 12,412 crore.  Although the soaring project cost and delayed commissioning has affected the company, MRPL could take advantage of the delay as crude oil prices have plummeted. The company changed the process design to suit the changing scenario, towards enhancement the capability of the new unit to process high tan and acidic crude and added more secondary processing units to upgrade residues and diesel quality, it has explained.

The chairman says that the company has ensured that best of technology is used in the project. "We will be able to handle crude price movements and gain advantage of the differential pricing of high tan and acidic crude, as most of the refineries in the country are unable to process them," he claimed in the release.