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Asia update: Downstream oil and gas processing

LNG Industry,


Indian refiners are returning to oil after ever increasing LNG prices cause problems. A delay in the improvement of local output and rising import costs are mainly to blame for India’s return to refining oil after a major switch to natural gas three year ago. Due to rising costs, more and more facilities are returning to furnace oil and naphtha as a fuel source.

An increase in capacity to 18 million tpy is being aimed for at the Mangalore refinery and petrochemicals facility. The facility’s managing director made the announcement and completion is expected by 2016 at the latest. Once the work is complete the state run facility will be looking to buy crude oil from Latin America, Azerbaijan, and the Middle East.

The second phase of the expansion and modernisation project at the Bharat Petroleum owned Kochi refinery has now found its final portion of funding. The Union Minister for petroleum and natural gas, S Jaipal Reddy gave the project the final Rs 4000 crore. The final phase of the project will enable the facility to increase processing capacity by 2 million tpy and enable it to produce Euro 3 standard petroleum products.

A 35 day maintenance shutdown at the Vadinar refinery is now complete. The Essar Energy PLC facility in Gujarat was taken offline for maintenance related to the upgrading and expansion of the facility. The overall expansion project will increase capacity at the plant to 375 000 bpd and will cost approximately US$ 1.85 billion.


Petron Corp.’s offer to the Philippine government to repurchase the Bataan oil refinery has been rejected by President Benigno S.C. Aquino III. The offer was rejected as the government believe that it would not be in the interest of the Philippine people for the facility to be rerun by government agencies.


The South Korean firm Daelim Industrial Group has signed a memorandum of understanding (MoU) to be a major investor in the new refinery planned for Vietnam. The MoU was signed with Vietnam National Petroleum Corp and refers to the Van Phong oil refinery which is to be constructed in Khanh Hoa Province. The entire project is expected to cost US$ 3 billion however, the portion of this that Daelim will be contributing is still unconfirmed.

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