L&T bags Rs. 1344 Cr. Refinery Orders from MRPL, Mangalore

abarrelfullabarrelfull wrote on 27 Sep 2012 14:57

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April 2, 2009

Mangalore Refinery and Petrochemicals Limited (MRPL) has awarded Larsen & Toubro (L&T), two large project orders for Rs 1344 crores, including a 3.7 MMTPA Diesel Hydrotreating Unit and a 70,000 PA Hydrogen Generation Unit (HGU) in the ‘Phase - III Refinery Project’ at Mangalore. The projects will enhance capacity and upgrade fuel quality to meet Euro IV specifications.

With this announcement, L&T has booked large orders valued at Rs. 5177 crores this week. This is in addition to several smaller orders secured by the Company's other businesses that are not announced.

MRPL, a subsidiary of Oil & Natural Gas Corporation Limited (ONGC) has existing refinery facility with a capacity of 12 MMTPA at Mangalore. As part of Phase - III expansion projects, with an objective to increase refinery capacity and also to improve the Diesel Fuel Quality to achieve Euro IV specifications, MRPL has awarded these orders on Lumpsum Turnkey (LSTK) basis to L&T.

The scope of work for these projects include residual process design, detailed engineering, procurement, supply, construction, installation, testing & commissioning and performance guarantee test run. The second project for the HGU, besides the above, also includes process technology, affirming customer confidence in L&T's integrated capabilities including technology to execute critical sections of refineries.

These orders were bagged by the Refinery Projects Business Unit and the Chemical Business Unit of L&T E&C Division against competition from global EPC contractors on the strength of its track record of having executed several similar projects. The MRPL orders will augment L&T's long track record in the execution of hydrogen plants and diesel quality improvement refinery projects. Engineers India Limited has been retained by MRPL to provide services for Project Management Consultancy for both the projects. Axens, France is the process licensor for the first project, i.e., Diesel Hydrotreating Unit. For the second project, i.e., Hydrogen Generation Unit (HGU), L&T will utilise the world renowned Hydrogen Technology of Haldor Topsoe AS Denmark, who will act as L&T's Process Licensor for this project.

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