November 18, 2011 at 3:12 pm #2045
RS 120 Billion Petroleum Refinery to come up in Andhra
18 Nov 2011
HYDERABAD: Amerind Petroleum Private Limited (Amerind) proposes to set up a nearly Rs.120 billion petroleum refinery near Visakhapatnam, in joint technical collaboration with US-based American Industrial Corporation (AIC).
The refinery to come up in Petroleum, Chemicals and Petro-chemicals Investment Region (PCPIR) near the coastal city of Visakhapatnam, will have an initial refining capacity to process 7.5 million tonnes of crude oil per annum (or 150,000 barrels per day) and will produce the entire range of petroleum products.
A memorandum of understanding between Andhra Pradesh government and Amerind to set up the refinery was signed here Thursday in the presence of Chief Minister N. Kiran Kumar Reddy.
Major Industries Minister J. Geeta Reddy later told reporters that the first phase of the project would be set up on turn key basis by AIC by relocating an existing and running refinery acquired by it in the US. The estimated cost of the first phase would be Rs.25.25 billion ($505 million).
In the second phase, the project would be expanded to a total refining capacity of 15 million tons per annum along with a petro-chemical complex, at an additional cost of Rs.86.11 billion.
The minister said this would be the first refinery in the state in the private sector. It would have its own captive floating marine terminal, with three underwater pipelines to receive the imported crude oil and to dispatch products for exports.
Promoted by Hyderabad-based technocrat entrepreneur Syed Badruddin, Amerind will set up the refinery with financial assistance from Exim Bank of the US.
Exim Bank will provide loan funding of $375 million for US costs of the project and up to 30 percent of this for local costs in India. AIC is a consortium of 14 American companies with 25 to 30 year experience in petroleum refineries.
The minister said the total implementation time for the project would be 30 to 36 months from the date of receipt of all clearances from the state and the central governments.
The refinery is expected to contribute Rs.15,544 crore to the central and state governments by way of taxes. It would also provide direct employment to 55,000 people.
Geeta Reddy said the refinery planned to set up 3,500 retail outlets to market its products over a period of three to five years from the date of commencement of commercial production
November 18, 2011 at 3:17 pm #4831
Got this Update from a friend who had it forwarded from India.
Not surprised to hear that some of the smaller US refineries could get chopped up and shipped overseas – that’s what happened to all of our ammonia plants (although it was high NG prices, not environmental controls, that killed them).
I have never heard of American Industrial Corporation http://www.american-industrial.com/ .
I have seen few different versions of this hit web -and sounds like AIC just set up the MOU Govt-Andhra, got a AIC bank loan $375MM …. but AIC has yet to purchase the US Refinery.
Several India news I saw was speculating it was small “operating” New York Refinery @ 7.5 MM mtpy (~150 MBPD) for $505 Million ….. after relocation/startup (assuming $375MM for purchase that would leave $130MM for logistics/re-construction/profit). Also intend double to 15 MM mtpy in Phase II after its relocated – as your article also states.
Anyone have firm news/idea which US refinery falls prey to this? The 150 MBD NY Refinery ~ could be any one several USEC: Sunoco Westville NJ – idled 150MBD, Sunoco Markus Hook NJ 175MBD sale -S/D 2011, or COP Delco/Trainer – s/d sell 4Q11 185 MBD?
India has been doing this relocation move with few CA & EU refineries (here is exhert from one last India Refinery Coker updates):
Its been busy year for India Expansions & Coker additions either starting construction, commissioning or cokers first full year operation – including some EU relocated 2nd Hand Refineries (Mobil Woerth, BP-Bayeroil Ingolstadt & Petrocanada Oakland) to India’s NOLC Cuddalore, CAL-Spice Energy Halida & Packastan Karachi Refineries.
Also cokers added at BPCL Bina & Kochi refineries, IOC-CPCL Chennai, IOC Koyali, Essar Reliance & Essar Vadinar and IOC Barauni Needle Coker.
Charles E. Randall
November 23, 2011 at 7:45 pm #4827
<The guessing may be over the USEC refinery relocating to India’s Visakhapatnam via AIC – the NJ Sunoco Eagle Point (idled – Shutdown 2010) 150MB refinery has been identified – however Sunoco will not confirm and has not announced a sale.- CR comments>
Report: Eagle Point refinery equipment headed to India
November 18, 2011|By Andrew Maykuth, INQUIRER STAFF WRITER
Sunoco Inc.’s Eagle Point refinery in Westville, Gloucester County, which was shut down in early 2010, may be reborn in India.Amerind Petroleum Private Ltd. and the Andhra Pradesh state government signed a memorandum of understanding to reassemble the refinery in Visakhapatnam, according to Indian media reports. Syed Badruddin, chairman of Amerind, told reporters the Export-Import Bank of the United States would lend $375 million of the project’s initial $500 million cost.
Thomas P. Golembeski, Sunoco’s spokesman, said the company had nothing to announce, but he confirmed Sunoco has been trying to sell Eagle Point’s equipment since the refinery closed.
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