L-;T Energy gets contract from IOCL

23 Aug 2022 , 08:14 AM

L&T energy company’s hydrocarbon-onshore branch has won a large contract from Indian Oil Corporation (IOCL).

L&T defines large contracts at between Rs2500 crore and Rs5000 crore.

To address the rising demand for petroleum products and to improve their long-term profitability and competitiveness, IOCL is constructing the Panipat refinery expansion (P-25) project, which would boost refining capacity from 15 MMTPA to 25 MMTPA.

For this P-25 Project, an engineering, procurement, construction, and commissioning (EPCC) contract is being used to set up a Residue Hydrocracker Unit (RHCU).

With a 2.5 MMTPA capacity and a license from Axens (France), the RHCU will convert vacuum residue (VR) into high-value commercial products (mainly diesel). The Lump Sum Turnkey (LSTK) method of international competitive bidding is used to award the contract.

For the same P-25 project of IOCL at Panipat-Refinery, L&T previously won a substantial EPCC Contract for the construction of a diesel hydrotreater (DHDT) unit (5.0 MMTPA, licensed by Shell).