IndianOil to invest $3.28bn in IOCL Gujarat Refinery and other projects
Indian Oil Corporation Limited (IndianOil or IOCL) has signed a memorandum of understanding (MoU) with the Gujarat Government for enabling investment of around INR 24,000 crore ($3.28 billion) for the IOCL Gujarat Refinery expansion and other infrastructure projects in the state.
The MOU signing ceremony for “Investment Promotion” was presided over by Gujarat Chief Minister Vijaybhai Rupani and Indian Petroleum and Natural Gas and Steel Minister Dharmendra Pradhan.
Dharmendra Pradhan said: “Gujarat has become the first choice of investors as in its roots is Prime Minister Shri Narendra Modi’s vision that implements new plans for the holistic development of the State.”
IndianOil will be establishing a petrochemical and lube integration (LuPech) project and acrylics/oxo alcohol project along with other infrastructure projects at its oil refinery in Vadodara.
According to the Indian state-owned petroleum refining company, the LuPech project will enable the production of import substitutes such as lube oil base stock (LOBS) and polypropylene.
On the other hand, the acrylics/oxo alcohol project at Dumad and Gujarat Refinery will produce value-added butyl acrylate, an important ingredient for paints, coatings, textile chemicals, adhesives, plasticizer industry, and other similar products.
IndianOil said that the projects will bolster its readiness for venturing into PVC, styrene, poly-methyl methacrylate, acrylonitrile, ethylene oxide, and other petrochemical projects in the future.
The company also signed MoU for infrastructure facilities at Dumad for Koyali-Ahmednagar-Solapur Pipeline (KAhSPL) and Tank Truck Loading facility for Linear Alkyl Benzene (LAB), which is a feed-stock for detergent industries.
The other infrastructure projects planned by IndianOil are a new flare system at Gujarat Refinery and also a hydrogen dispensing facility for fuel cell electric vehicles (FCEVs).
IndianOil said that its Gujarat Refinery will be implementing the first-ever hydrogen dispensing facility in India as a clean fuel initiative. The facility will be used for fuelling hydrogen buses traveling between Vadodara and Kevadia /Sabarmati Ashram.
SM Vaidya – Chairman of IndianOil said: “Gujarat is charting a new path of prosperity. To power that journey, IndianOil’s Gujarat Refinery is now poised to grow to 18 MMTPA capacity. New units for the production of Polypropylene, Butyl Acrylate and Lube Oil Base stocks will also be added to the Refinery’s portfolio.”
Earlier this year, lndianOil said that its board had approved the construction of an INR29.3 billion oil refinery at Cauvery Basin, Nagapattinam in Tamil Nadu with a capacity of 9 MMTPA.