LTHE wins contract for upgrades at HPCL Visakh Refinery in India

WCN Editorial Team 25 Oct 2019 ASIA ENERGY & UTILITIES

L&T Hydrocarbon Engineering (LTHE), a wholly-owned subsidiary of engineering and construction major Larsen & Toubro (L&T), has won a mega engineering, procurement, construction and commissioning (EPCC) contract from Hindustan Petroleum Corporation (HPCL) for Residue Up-gradation Facility (RUF) at Visakh Refinery in India.

The RUF will be constructed as part of the INR209.28bn ($2.95bn) Visakh Refinery Modernisation Project (VRMP).

Hindustan Petroleum has selected Chevron Lummus Global (CLG) to provide licensed technology for its new 3.55mmtpa residue upgrading unit.

According to L&T Hydrocarbon Engineering, the new RUF will help HPCL to convert heavy oils into Euro 6 diesel and also eliminate fuel oil production while increasing the feedstock and product flexibility.

LTHE managing director and CEO Subramanian Sarma said: “L&T has a proven track record of over 25 years in the refinery and petrochemical sector and bagging this contract from HPCL reinforces our integrated capabilities in executing critical plants for the sector.”

The L&T subsidiary secured the contract following an international competitive bidding on Lump Sum Turn Key (LSTK) basis.

The company is already involved in two packages of the Visakh Refinery Modernisation Project. Under these packages, the company is executing a crude distillation unit/vacuum distillation unit and a full conversion hydrocracker unit.

LTHE is an engineering, procurement, fabrication, construction and project management company that provides integrated ‘design to build’ solutions to large and complex offshore and onshore hydrocarbon projects across the world.

In March 2019, L&T won orders worth more than INR16bn ($246.56m) across various business segments in India and abroad.

The company’s Onshore Projects business secured a lump sum turnkey contract from an Indian client for the design, supply and construction of a liquefied natural gas (LNG) tank facility on the east coast of India.

The Onshore Projects business unit also secured additional work from projects under execution in Saudi Arabia and Kuwait.

The company classifies its projects under four categories. Significant contracts are worth INR10bn ($140m) to INR25bn ($352m), large contracts are valued between INR25bn ($352m) and INR50bn ($704m), major contracts are worth INR50bn ($704m) to INR70bn ($986m), and contracts under mega classification are worth more than INR70bn ($986m).

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Image: LTHE secures EPCC contract for Residue Up-gradation Facility at HPCL Visakh Refinery in India. Photo: courtesy of IM3847/Wikimedia Commons.

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