Essar offers fuel to wipe out deficit in the country
Essar Oil Ltd, India's newest refiner, has offered to wipe out most of the fuel deficit in the country by supplying the entire output from its Vadinar refinery, where production has been raised to 12.5 million tons.
By PTI |
NEW DELHI: Essar Oil Ltd, India's newest refiner, has offered to wipe out most of the fuel deficit in the country by supplying the entire output from its Vadinar refinery, where production has been raised to 12.5 million tons.
Effective May, thruput at Essar's Vadinar refinery in Gujarat has been raised to 12.5 million tons a year from 10.5 million tons earlier, company Managing Director Naresh Nayyar wrote to Petroleum Secretary M S Srinivasan on May 5.
Though India is surplus in refining capacity, it is short in LPG and kerosene production. This year, it may even have to import diesel due to double digit demand growth.
Currently, Essar supplies all of the 0.47 million tons of LPG, 0.65 million tons of kerosene, 4.44 million tons of diesel and most of 1.95 million tons of petrol to state-run Indian Oil, Bharat Petroleum and Hindustan Petroleum.
At higher thruput, LPG production would rise to 0.54 million tons, petrol to 2.23 million tons, kerosene to 0.75 million tons and diesel to 5.07 million tons.
"We are ready to offer the whole of our production of LPG, petrol, diesel and kerosene to meet the shortfall in the country and replace imports," he wrote.
Essar's Vadinar refinery started operation in November 2006 at 7.5 million tons a year capacity. This is slowly ramped up and now the refinery is operating at 12.5 million tons capacity.
"We take pleasure in confirming that EOL has been supporting the PSU oil retailers effectively by supplying products in the domestic market, thereby substituting equivalent quantity of products import resulting in substantial savings in production procurement cost and valuable foreign exchange for the country," Nayyar wrote.
Effective May, thruput at Essar's Vadinar refinery in Gujarat has been raised to 12.5 million tons a year from 10.5 million tons earlier, company Managing Director Naresh Nayyar wrote to Petroleum Secretary M S Srinivasan on May 5.
Though India is surplus in refining capacity, it is short in LPG and kerosene production. This year, it may even have to import diesel due to double digit demand growth.
Currently, Essar supplies all of the 0.47 million tons of LPG, 0.65 million tons of kerosene, 4.44 million tons of diesel and most of 1.95 million tons of petrol to state-run Indian Oil, Bharat Petroleum and Hindustan Petroleum.
At higher thruput, LPG production would rise to 0.54 million tons, petrol to 2.23 million tons, kerosene to 0.75 million tons and diesel to 5.07 million tons.
"We are ready to offer the whole of our production of LPG, petrol, diesel and kerosene to meet the shortfall in the country and replace imports," he wrote.
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Essar's Vadinar refinery started operation in November 2006 at 7.5 million tons a year capacity. This is slowly ramped up and now the refinery is operating at 12.5 million tons capacity.
"We take pleasure in confirming that EOL has been supporting the PSU oil retailers effectively by supplying products in the domestic market, thereby substituting equivalent quantity of products import resulting in substantial savings in production procurement cost and valuable foreign exchange for the country," Nayyar wrote.
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