Punj Lloyd's new contract with IOC

New Delhi: Punj Lloyd Ltd has bagged a Rs 590-crore contract for building facilities associated with Indian Oil Corporation’s Residue Upgradation project at its Vadodara Refinery in Gujarat.

The turnkey contract entails engineering, procurement, construction and commissioning assistance (EPCC) services and was awarded following an international competitive bidding process, a Punj Lloyd statement said.

The scope of work includes setting up a 3.7-mmtpa (million metric tonnes per annum) ‘Delayed Coking Unit’ and a 150-tmtpa (trillion metric tonnes per annum) ‘LPG Merox Unit’. The project is scheduled to be completed within 28 months.

“This project acquires strategic importance for Punj Lloyd, as many similar Delayed Coking Units are expected to be set up in the major refineries in India. Further Punj Lloyd will gain experience of working with renowned process licensor, Foster Wheeler,” the statement said. With this, the order backlog for the Punj Lloyd group on consolidated basis has gone up to Rs 18,484 crore, the statement said.

A ‘Delayed Coking Unit’ essentially converts low value residual products into lighter products of higher value, with the objective of maximising the yield of liquid product and minimising the yields of wet gas and coke.

‘Merox Units’ are used in oil refineries and natural gas processing plants to remove mercaptans from LPG, propane, butanes, light naphthas, kerosene and jet fuel by converting them to liquid hydrocarbon disulfides.