Essar Oil offers to supply extra fuel in time of crisis

Essar Oil has offered to supply 2 million metric tonne per annum (MMTPA) of additional quantity of fuel products in the event of a country-wide fuel shortage.

NEW DELHI: Essar Oil has offered to supply 2 million metric tonne per annum (MMTPA) of additional quantity of fuel products in the event of a country-wide fuel shortage. The company having recently enhanced its refining capacity from 10.5 MMTPA to 12.5 MMTPA has already been supplying its entire production of LPG, diesel, kerosene and substantial portion of petrol to public sector oilcos HPCL, BPCL and IOC.

In a letter to the petroleum secretary, Essar Oil (EOL) managing director Naresh Nayyar has said that the company is willing to supply additional petroleum products produced in its Vadinar refinery to the domestic market.

���We have now increased the throughput of our refinery from 10.5 MMTPA to about 12.5 MMTPA effective from May 2008. Accordingly, the product availability from EOL refinery shall increase,��� he said. Even as India is surplus in refining capacity and exports petroleum products, it still imports LPG and kerosene.

Currently, Essar supplies entire 0.65 million tonne of kerosene, 4.44 million tonne of diesel, 0.47 million tonne of LPG and most of 1.95 million tonne of petrol to the state-run oil companies.

At higher thruput, LPG production is expected to rise to 0.54 million tonne, petrol to 2.23 million tonne, kerosene to 0.75 million tonne and diesel to 5.07 million tonne.

���We are ready to offer the whole of our production of LPG, gasoil, gasoline and SKO to meet the shortfall in the country and replace imports,��� he said in the letter.
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The Vadinar refinery was operationalised in November 2006 at 7.5 MMTPA capacity. ���We are pleased to inform you that post commissioning of our refinery at Vadinar, Gujarat in November 2006, we have now integrated all primary and secondary processing units, including fluidised catalytic cracker unit and diesel hydro desulphurisation unit and the operations are stabilised,��� Mr Nayyar said.
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