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LTHE wins HRRL’s 7000 Cr Barmer DFCU Project; to Boost Polymer Industry

HRRL, HPCL Rajasthan Refinery Ltd. logo

HPCL Rajasthan Refinery Limited (HRRL), a joint venture between Hindustan Petroleum Corporation Limited (HPCL) and Government of Rajasthan, has awarded L&T Hydrocarbon Engineering Limited (LTHE) an order to setup a Dual Feed Cracker Unit (DFCU) worth more than INR 7,000 Crore in Barmer. This plant will have capacity of 890 KTPA (Kilo-Tonnes Per Annum) to produce polymer grade Ethylene and Propylene.

Growing Demand of Ethylene and Propylene

Ethylene and Propylene downstream products Polyethylene and Polypropylene used by polymer industry which in turn provides raw materials like PVC, LDPE, XLPE etc. to manufacturing industries like wires and cables, shoes, packaging etc.

According to a report published by IHS-Propylene Chemical Economics Handbook dated 31 May 2017 the production capacity of Propylene in India for the year 2016-17 was 5.00 Million Metric Ton (MMT). The demand for the same time period stood at 5.09 MMT creating a minor deficit of 1.8 percent. Interestingly, 95% of this demand was used for making polypropylene for polymer industry. With CAGR of around 8% propylene demand in India by 2030 is expected to be around 10 MMT.

The same report puts Ethylene production capacity of India for 2016-17 at 6.4 MMT and demand at 5.5 MMT. Although there is no deficit in this period but Ethylene has a higher CAGR of around 11 percent which is expected to result in 13.7 MMT domestic demand by 2030.

(Note: All the above mentioned figures are approximate and have been rounded off for reader convenience)

Dual Feed Cracker Unit (DFCU) Functionality and Products

DFCU is used to convert Refinery Naphtha and Offgases to produce polymer grade Ethylene and Propylene through thermal cracking. Ethylene and Propylene are used as feedstock for downstream Polyethylene Unit and Polypropylene Unit. The process also produces by-products like Butadiene, Benzene, Toluene and Gasoline.

L&T Hydrocarbon Engineering awarded HRRL Complete EPCC package for Barmer DFCU

L&T logo

HRRL has awarded L&T complete engineering, procurement, construction and commissioning (EPCC) contract for setting up a Dual Feed Cracker Unit (DFCU) with a capacity of 890 KTPA for their Rajasthan Refinery Project at Barmer, Rajasthan. The completion date for this project is 32 months.

L&T in a stock exchange filing informed that HRRL DFCU is the biggest EPCC contract awarded in the country to date in the Refinery and Petrochemical Sector. Speaking on the occasion Mr. Subramanian Sarma, Whole-time Director & Sr. EVP (Energy), Larsen & Toubro Limited and CEO & MD, LTHE said “we are very delighted to be part of this mega-development project in Rajasthan and I would like to thank HRRL and HPCL for having trust in our capabilities to deliver such complex process plants with high standards of HSE and Quality”.

Other Ongoing Petrochemical Projects by LTHE

Some of the other similar petrochemical projects being executed by LTHE are three packages, namely Residue Up-gradation Facility, Crude Distillation Unit / Vacuum Distillation Unit and Full Conversion Hydrocracker Unit for HPCL’s ongoing Visakh Refinery Modernisation Project at Visakhapatnam. Another for Indian Oil Corporation Limited’s Naphtha Cracker and Associated Unit in Panipat, India, in consortium with Toyo Engineering Corporation comprising Ethylene (0.8 MMTPA), Propylene (0.5 MMTPA) and Benzene (0.125 MMTPA) and few more.