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October 26, 2006 at 11:20 am #4114
After Jamnagar refinery fire, Govt orders LPG imports just in case
AMITAV RANJAN
RIL Refinery: 3000-ton daily shortfall after fire hits hydrotreater, repair in 10 days
New Delhi, October 25: The Union Petroleum Ministry has directed Indian Oil Corporation to import five cargoes of LPG — of 13,000 tonnes each — to tide over a possible shortfall due to today’s fire in Reliance Industries Ltd’s Jamnagar refinery.
The hydrotreater, a key element of one of the two LPG manufacturing chains in the refinery, uses hydrogen to upgrade the feedstock which is then fed to the Fluid Catalytic Cracker unit (FCCU) to produce diesel and LPG.
Fed by these two chains, the cracker produces about 6,000 tonnes of LPG daily.
So the fire, sources said, effectively cuts LPG output by half.
LPG is the only RIL product that’s bought by the three state-run LPG retailers, IOC, Bharat Petroleum and Hindustan Petroleum. Hence, the quick decision to import.
With LPG inventory currently at 250,000 tonnes, enough for eight-nine days cover, the Ministry decided not to take chances.
“The imports are from the safety point of view. Reliance says it will restore the unit in 10 days but even if it were to take 15 days, we would require 45,000 tonnes. We plan to import 65,000 tonnes to be on the safe side,” sources said…
Read the article at http://www.indianexpress.com/story/15419.html
Both hydrotreaters feed the single FCCU.
amitav.ranjan@expressindia.com
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October 26, 2006 at 11:33 am #7518
AnonymousFire spells big insurance claim about 55 to 65 Million USD
Found this article by following the indian express link in the previous discussion
http://www.indianexpress.com/story/15419.html
Insurers see Rs 300 cr claim from RIL Jamnagar fire
Claim will be recovered from reinsurers in LondonMumbai, October 25: Insurance companies are now expecting a total claim of Rs 250-300 crore out of the various losses caused by the fire at Reliance Industries’ Jamnagar plant.
The mega policy covering the Reliance Industries plants is mainly driven by the terms, conditions and pricing of overseas reinsurers and was renewed at the beginning of the month.
Insurance industry sources point out that RIL will claim compensation for losses caused to equipment and possible “loss of profit” till the damaged plant begins functioning normally after repairs.
“Assuming the daily profit is pegged at over Rs 10 crore, the claims will be larger depending upon the days required for the repairs,’’ said a source. RIL has already announced that the plant will remain closed for some days but has not informed when repair work will begin.
‘’If the repair work takes 20 to 30 days, a total claim over Rs 250 crore is bound to be lodged with the insurers,’’ a source said. A few years ago, the group, in similar circumstances, had lodged a claim of Rs 200 crore for the loss of 27 days’ production.
However, local insurance companies will be recovering the majority of claims from re-insurers in the London market.
The exact extent of damage to the Hydrotreater II unit, which is one of the 40 units in the refinery complex, is being assessed, said an RIL press release. As a pre-cautionary measure, the neighbouring Diesel Hydrotreating Unit — II has also been shut down.
Written by sitanshu.swain@expressindia.com -
October 26, 2006 at 11:39 am #7517
AnonymousReliance is India’s most valuable company
http://www.indianexpress.com/story/14547.html
Reliance
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