Indian Oil Corporation Ltd. (IOCL) will invest around INR 1,330 crore (USD 197.6 million) in the Gujarat refinery located in Koyali, India, to raise fuel quality to meet Bharat Stage IV (BS IV) by year end.
According to SK Dhar Gupta, IOCL’s executive director of the refinery, the project will be done in two phases. The first phase will involve an investment of INR 930 crore (USD 138.20 million) to revamp the refinery’s diesel hydrotreating units. The second phase will involve an investment of INR 390 crore (USD 58 million) to revamp the vacuum gas oil hydrotreating unit.
Gupta said IOC is in the process of implementing the first phase. The second phase is still awaiting board approval.
IOC’s target is to start supplying BS IV-compliant fuels to its loading terminals by January 2017, he said. BS IV, which is being implemented starting April 2017, will require sulphur content in diesel fuel to be reduced from 350 parts per million (ppm) to 50 ppm or less and in petrol from 150 ppm to 50 ppm or less.
“We have also initiated preparations to jump directly from BS IV to BS VI fuel by 2020. For this, we will need additional hydrotreating units for both petrol and diesel. It will need additional 50-55 acres. A preliminary feasibility report has put the initial investment estimate at INR 2,770 crore (USD 411.6 million) with variation of +/- 30%,” Gupta said. This project needs be completed by September 2019 to meet the April 2020 implementation date. By April 2020, the sulphur content in petrol and diesel fuel in India will have to be 10 ppm or less.