India to make significant contribution to refinery VDU

India is expected to register the second-highest refinery vacuum distillation unit (VDU) capacity additions in Asia between 2021 and 2025 after China, contributing about 26% of the total capacity additions, says GlobalData, a data and analytics company.

GlobalData’s report, ‘Global Refinery Vacuum Distillation Units (VDU) Outlook to 2025 – Capacity and Capital Expenditure Outlook with Details of All Operating and Planned Vacuum Distillation Units’, reveals that India is likely to witness a total VDU capacity addition of 216 thousand barrels per day (mbd) by 2025. Out of this, the expansion project at the Mumbai I refinery contributes 120 mbd while the remaining 96 mbd would come from the new-build Barmer refinery.

Teja Pappoppula, Oil and Gas Analyst at GlobalData, comments: “The Mumbai I refinery is the only upcoming VDU expansion project in India with 120 mbd of capacity expected to be added in 2021. This cracking type VDU refinery is in the Maharashtra state with Hindustan Petroleum Corp Ltd being the operator.

“The planned Barmer refinery in the country is the other contributor with 96 mbd of new build VDU capacity expected to become operational in 2022. This coking type VDU refinery is to be operated by HPCL Rajasthan Refinery Ltd.”

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