Essar Oil begins production at its Vadinar refinery in Gujarat

Mumbai, Nov 24 (UNI) Essar Oil Ltd today announced the successful start up of operations at its petroleum refinery at Vadinar in Gujarat.

The plant will start its trial production with a capacity of 7.5 million tonnes per annum (mtpa) of crude which will gradually go up to 10.5 mtpa, said an Essar press release here. This current phase of commissioning comes four months ahead of the originally scheduled date of commissioning that is March 31, 2007.

Essar Oil expects to attain production at full capacity in the next two quarters, the release added.

The Company said that the project cost of Rs 10,826 crore (dollar equivalent of 2.4 billion) is extremely competitive and lower than estimated costs for a green field refinery. The Refinery has been built with state-of-the-art, contemporary technology and will have the capability to produce petrol and diesel suitable for use in India as well as advanced international markets.

It will also produce LPG, Naphtha, light diesel oil, aviation turbine fuel and kerosene. It has been designed to handle a diverse range of crude -- from sweet to sour and light to heavy.

Commenting on the occasion, Essar Group Chairman Shashi Ruia said,''The Vadinar refinery signals our commitment to the nation to be a strong and dominant force in core sectors of the Indian economy. The early commissioning is also a tribute to the employees of the Essar Group and its business associates for their unstinted efforts''.

The refinery comes at a most opportune time and will fulfil the gap between worldwide demand and supply in the petroleum sector, he said.

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