Gujarat Refinery Hits New Capacity, Awaiting Full Fuel Output

The Gujarat refinery, operated by Indian Oil in Vadodara, has successfully reached its expanded crude-processing capacity of 18 million tonne-a-year (MTPA). Despite this milestone, the refinery cannot yet fully utilize this capacity. This is due to ongoing commissioning of downstream units essential for converting crude into finished fuels and other products. Executive Director Biplob Biswas explained that while 18 MTPA crude processing is achievable now, full utilization hinges on completing secondary processing units. This is anticipated by the close of the current financial year.

The expansion is part of the ₹17,825-crore Petrochemicals and Lube Integration Project (LuPech), which aims to increase the refinery's capacity and integrate lube oil base stocks and petrochemicals. This project, largely a brownfield development, has seen major revamps and the commissioning of new units like a Vacuum Distillation Unit. The final component, a polypropylene unit, is expected online by the fiscal year's end.

This new polypropylene unit, with a 500,000 tonnes-a-year capacity, will leverage Indian Oil's INDMAX technology. This proprietary technology significantly enhances propylene yield from fluid catalytic cracking units, potentially reaching 18% compared to the conventional 8-10%. This advancement aligns with India's growing demand for polypropylene, a market where the country still faces import reliance despite substantial domestic capacity. The refinery also plans to collaborate with Gujarat's downstream manufacturers to identify product development opportunities.

Crude sourcing for the refinery has also diversified, with 70% imported and 30% domestic. Supplies come from Russia, West Asia, the US, and Venezuela, reflecting a dynamic global market. As the Gujarat Refinery celebrates its diamond jubilee, this expansion marks a significant step from its initial 2 MTPA capacity in 1965 to its current 18 MTPA target, driven by market demand growth.