HPCL, Rajasthan state plan
groundbreaking for Barmer
Downstream Technology Editor
HPCL Rajasthan Refinery Ltd. (HRRL), a 74-26% joint venture of Hindustan Petroleum Corp. Ltd. (HPCL) and the
state government of Rajasthan, will kick off construction
activities in mid-January on the JV’s previously announced
project to set up a 9 million-tonne/year integrated refinery
and petrochemical complex at Pachpadra Tehsil, Barmer
District, Rajasthan (OGJ Online, Apr. 18, 2017).
A groundbreaking ceremony for the Barmer integrated
complex is scheduled for Jan. 16, India’s Ministry of Petroleum & Natural Gas (MOPNG) said.
Start of construction on the 431.29 billion-rupee complex
follows a series of setbacks and technical revisions plaguing
the project that, first conceived in 2006, did not receive official environmental clearance to proceed from India’s Ministry of Environment, Forest, and Climate Change (
MOEFCC) until recently (OGJ Online, Aug. 17, 2017; July 18, 2014;
Mar. 14, 2013; Sept. 19, 2007).
Once completed, the refinery—which will take about 4
years to build—will be equipped to produce Bharat Stage
6-grade (equivalent to Euro 6-quality) fuels from a feedstock
of both locally produced and Saudi Arabian crudes to meet
increased demand for petroleum products in Rajasthan as
well as other northern Indian states.
During its first 8 years of operation, the refinery will
be designed to process 1.5 million tpy of Rajasthan crude
from nearby Mangla fields and 7. 5 million tpy of imported
Arab Mix crude—consisting of Arab Light and Arab Heavy
grades—before switching to a full 9 million-tpy feedstock
slate of Arab Mix beginning in its ninth year of operation,
according to documents filed with MOEFCC.
The Barmer refinery is scheduled for startup sometime
According to Engineers India Ltd.’s revised environmental
impact assessment for the Barmer project filed with MOEF-
CC in July 2017, the complex will include the following
nameplate processing capacities:
• Crude distillation, 9 million tpy.
• Vacuum distillation, 4. 8 million tpy.
• Naphtha hydrotreating, 1.8 million tpy.
• Isomerization, 260,000 tpy.
• Continuous catalyst regeneration reforming, 300,000 tpy.
• Diesel hydrotreating, 4.1 million tpy.
Fluid catalytic cracking, 2. 9 million tpy.
• Delayed coking, 2. 4 million tpy.
African companies to build what could become the state’s
Signed in Beijing on Jan. 10, the MOU covers construction of a 5,500-b/d modular refinery to be built in two phases by a consortium of China Petrochemical Corp. (Sinopec)
subsidiary Sinopec International Petroleum Service Corp.
(SIPS), Peiyang Chemical Equipment Co. (PCC) of China,
and Nigeria-based African Infrastructure Partners, the Edo
The first 500-b/d phase of the project would be completed within 12 months following all necessary approvals by
Nigerian regulatory authorities, with the second 5,000-b/d
phase to follow sometime thereafter.
Alongside agreeing to provide up to 70% financing for the
refinery’s first 500-b/d phase, PCC also will serve as operator and manager of the refinery before ultimately transferring it to unidentified local investors, the state government
The planned refinery comes as part of the Nigerian federal government’s initiative to install modular refineries to
help meet the country’s rising demand for petroleum products as well as the state’s effort to establish itself as a viable
gateway for product supply to other Niger Delta states, according to Edo Gov. Godwin Obaseki.
A definitive timeframe for start of construction on the
project has yet to be determined.
Announcement of the government-proposed refinery follows a previous announcement by US businessman Charles
Ihaza he acquired about 453.9 hectares of land in the Ovia
North East Local Government Area of Eghudu, Edo, to establish a more than $2-billion modular refinery capable of
producing more than 80,000 b/d of finished products, Nigeria’s federal news agency said on Apr. 28.
Further details regarding the two projects have yet to be
The proposed refinery projects come in the wake of Nigeria’s
Department of Petroleum Resources (DPR) award in 2015
of 25 licenses to private investors to establish refineries in
Nigeria as part of the federal government’s strategy to expand the country’s existing refining capacity through use
of modularly constructed refineries. (OGJ Online, June 22,
2017; OGJ, Jan. 2, 2017, p. 55).
Ibe Kachikwu, Nigeria’s minister of state for petroleum
resources, previously said that finance remains one of the
major challenges facing most of the private firms previously
licensed to set up modular refineries in the country (OGJ
Online, Aug. 21, 2017).