(ET)
Indian Oil Corporation (IOC), the country’s largest fuel retailer, plans to double its base-oil production from Haldia refinery in West Bengal by adding a new 270 Thousand Tonne Per Annum (TMTPA) Catalytic Dewaxing Unit (CDU) at a cost of Rs 1,085 crore, the company said in an application to the environment ministry.
“The proposed new plant, which is expected to run on neat-hydrocracked residuum in conjunction with the existing cat-dewaxing plant, should be able to increase the base oil production ex refinery by around 100 per cent,” IOC said. Base-oil is a name given to the lubricant grade oil initially produced from refining crude oil or through chemical synthesis.
The availability of a hydrocracker unit and the upcoming coker block has led to substantial potential in the refinery for augmenting the base oil production volume by setting up a new base oil production facility, the company said. It added that the base oil market is more stable than auto fuel market and the proposed project will provide additional flexibility to the refinery during major price swings.
